Driver News

Trucking Company Daseke's Shares Start Trading on Nasdaq

Company is first in the truckload sector to list since 2010

By

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 erica.phillips@wsj.com

https://www.wsj.com/articles/trucking-company-dasekes-shares-start-trading-on-nasdaq-1488298267

 

 

 

 

 

 

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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


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Driver Appreciation

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.


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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.

Driver Provisions:

  1. Applies to Line Haul 1 & 2 Drivers paid by the mile
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Load Qualifications: 

  1. Split Loads: $30 paid to the first driver
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