Trucking Company Daseke's Shares Start Trading on Nasdaq
Company is first in the truckload sector to list since 2010
Erica E. Phillips
• Feb. 28, 2017 11:11 a.m. ET
A flatbed truck drives past the Amazon Wind Farm Fowler Ridge in Indiana. Photo: Bloomberg News
Trucking company Daseke Inc. shares made their debut Tuesday via a merger with a special-purpose acquisition company in a deal valuing the company at about $700 million.
Daseke, which hauls oversize industrial equipment and materials on a fleet of 6,000 flatbed trailers and 3,000 tractors, is the first in the truckload sector to list since 2010, though Schneider National Inc., the largest privately held U.S. trucking company by revenue, is planning an initial public offering later this year.
The company listed on Nasdaq via a merger with Hennessy Capital Acquisition Corp. II. The stock traded at $10.24 a share midmorning in New York up 0.2%.
One of the nation’s top truckload firms specializing in the flatbed sector, Daseke hauls materials, parts and equipment for major manufacturers including Boeing Co., Caterpillar Inc., Deere & Co., United Technologies Corp. and others. The firm has grown rapidly in recent years, acquiring nine companies since 2008 and building a national footprint. Last year, Daseke’s revenue was $655 million, up from $30 million in 2009.
Daseke plans to use approximately $150 million raised in the IPO to pursue more acquisitions, a spokesperson said.
“We’ve been a consolidator of the open deck industry over the past eight years, and we’ll continue to do that going forward,” said Chief Executive Don Daseke.
In the fragmented $133 billion open-deck market, Daseke accounts for less than 1% of market share. In a recent presentation to investors, Daseke said it has already identified two dozen smaller, open-deck hauling firms that it wants to buy.
Mr. Daseke, 77, said his aim is to double earnings before interest, tax, depreciation and amortization by 2019, to $200 million.
The public offering comes as the incoming presidential administration is calling for renewed investment in infrastructure and manufacturing, sectors that rely on flatbed or “open-deck” trucks.
Dan Hennessy, chief executive of Hennessy Capital, said Daseke is positioned to be a key player if U.S. infrastructure spending increases.
Hennessy Capital brought school bus maker Blue Bird Corp. public through its first SPAC in 2015. The firm had planned to list United Subcontractors Inc. last year, but the deal fell through in September. The SPAC then approached Daseke, which had filed confidentially with the Securities and Exchange Commission in 2015 but ultimately decided against an IPO at that time.
Daseke jumped at the Hennessy offer because “in effect, it’s kind of a quickie IPO because it’s simpler,” Mr. Daseke said.
Through the deal, Hennessy Capital’s SPAC will acquire all outstanding capital stock of Daseke in an all-stock merger transaction, introducing Daseke as a publicly traded company. HCAC will change its name to Daseke Inc. Mr. Daseke will continue to serve as chairman and CEO of the company and Mr. Hennessy will join the board of directors.
Daseke management will retain ownership of roughly half of the firm.
Write to Erica E. Phillips at email@example.com
ALEX® is your personal online Hornady Transportation benefits tool. He’s funny, speaks in plain English—not insurance-talk—and is available to help you and your family figure out which benefits plans will best serve your needs (anonymously, of course).
This interactive online tool is easy, free for you and your family to use, and available around the clock.
Hornady is Reducing Insurance Prices!
Hornady Transportation is offering more insurance flexibility for 2017. We now have two additional tiers that could save you money. In 2017 we will have employee only, employee & children, employee & spouse, and family tiers. To learn more about your options go to our HR Connection website www.hrconnection.com
Two Cent Increase in Pay Effective September 7, 2015 for all company drivers. This pay increase allows the starting pay rates to be increased by .02cpm and ceiling rates raised by .03cpm. Starting pay ranges from .44 to .49 based on experience levels. The Ceiling rate is now .52cpm for all Line Haul company drivers.
We will continue to provide our drivers with the miles, pay, quality home time and the possibility to have a successful driving career that they deserve!
Driver appreciation is a week in September every year. We want to honor all our professional truck drivers for all your hard work and commitment in tackling one of our economy’s most demanding and important jobs!
Meals will be served on Tuesday through Thursday. On Tuesday, breakfast will be served from 8:00 am to 12:00 pm. Wednesday and Thursday lunch will be served from 10:00 am to 6:00 pm. Door prizes will be given away each day. There will also be a travel kit given to each driver.
New Tarp Pay
In response to driver feedback, we are pleased to announce new Tarp Pay Per Load for all mileage drivers. There will be a $30 Tarp Pay Per Load applied to all “driver tarped” loads. The following provisions and qualifications will apply.
- Applies to Line Haul 1 & 2 Drivers paid by the mile
- Does not apply to Dedicated, Cap or Lease Purchase Drivers or any other drivers paid on a percentage basis.
- Split Loads: $30 paid to the first driver
- Multiple Drop Off Loads: $30 paid, No additional pay for drops
We will continue to explore new ways of rewarding our drivers for always giving their best. Thank you for your feedback, hard work and dedication in making our company a success.
Rapid Lease Program
Hornady Transportation, LLC is pleased to offer its Rapid Lease Program. Earn 70% of the gross revenue, 100% fuel surcharge and 70% Accessorial charges. Freight and Home Time are your choice. Don’t miss this great opportunity. Call today!!!
Lease Purchase Tractors
We have the 2014 and 2015 Freightliners available for lease. There is no down payment required on these trucks! You pull our trailer with no rental fee.
Call Recruiting in Monroeville to get started and to receive your Rapid Lease information kit.
Hornady Transportation adds 50 New 2016 & 2017 Peterbilt’s to the fleet. These trucks represent the ultimate in driver comfort and safety and is just one more way Hornady Transportation cares for our drivers. Click here to read more.
Hornady Transportation provides five paid holidays to our drivers. The paid holidays are Memorial Day, Labor Day, Thanksgiving Day, Christmas and New Years. Effective January 4, 2016, any company driver who is here on a PAID Holiday will get Holiday Pay. There is no waiting period.