Daseke Adds Three Companies, Annual Revenue Run Rate Grows to $1.2B
📅 Tue December 05, 2017 - National Edition
Moore Freight Service (MFS), based in Mascot, Tennessee (near Knoxville), is one of only three primary carriers of scale that specialize in hauling glass — and owning equipment configured to handle such loads.
Daseke, Inc., a consolidator and flatbed and specialized transportation company, announced Dec. 4 that three additional carriers have joined the company, strengthening its position as a transformative force in the industrial goods trucking industry.
The three top-tier flatbed and specialized carriers added to Daseke's family of companies are Tennessee Steel Haulers & Co. (TSH & Co.), The Roadmaster Group and Moore Freight Service.
“Today is a significant milestone for Daseke, as our company's total revenue, EBITDA and fleet size are all now approximately 40 percent larger. We've added three exceptional organizations to our family of operating companies focused on unique sectors with promising growth characteristics,” said Don Daseke, president and CEO of Daseke. “We are very proud to be consistent in our flatbed and specialized focus, while adhering to our conservative risk management philosophy, to achieve the growth goals that we presented to the market when we became a public company this past February.”
TSH & Co., The Roadmaster Group and Moore Freight Service are highly strategic additions to the Daseke family of companies for multiple reasons. As a result of the closings, Daseke is now on track in 2017 to have $143 million in pro forma EBITDA[i] [ii]and $1.2 billion pro forma in revenue [iii]. This represents a compound annual growth rate of 48 percent in pro forma Adjusted EBITDA and 59 percent in pro forma adjusted revenue since the company's first year of operations, 2009, when EBITDA was $6 million and revenue was $30 million.
“With the addition of TSH & Co., Daseke immediately becomes more asset-light in its fleet mix. TSH & Co. is a second-generation trucking company with a rare 1,100 flatbed-focused fleet with a 100 percent owner-operator model,” said Daseke. “With the combined owner-operators at TSH & Co., The Roadmaster Group and Moore Freight Service, my estimate is that our asset-light mix run rate will be well-balanced at an estimated 50 percent by December 31, 2017. Those percentages exemplify our long-term strategic goal of managing a lower capital expenditure intensive, asset-right fleet mix.”
With the addition of The Roadmaster Group, an elite high-security cargo carrier, Daseke's position is further bolstered in an important niche market with limited carriers. The Roadmaster Group is the parent company for Tri-State, the longest-tenured high-security cargo hauler in the country, founded in the 1930's.
“Earlier this year, R&R Trucking joined Daseke bringing an expertise in the high-security cargo segment. Our footprint in this end market has now grown even stronger with the addition of The Roadmaster Group,” said Daseke. “With two of the largest high-security cargo carriers now on the same team, we will become a force in the high-security and arms, ammunition and explosives (AA&E) cargo market.”
Moore Freight Service expands capabilities as a major player in a unique, specialized niche, hauling sheets of commercial glass, as large as 17 by 10 ft. and more than one in. thick, with highly customized trailers.
“This exclusive market has intrigued our company for several years, as there are only three primary carriers,” stated Daseke. “It is very difficult to build scale quickly in the commercial glass niche. I applaud Moore's CEO, Dan Moore, and his team, who have made a name for themselves as a premier carrier. Moore's focus is to serve the largest glass manufacturers through a unique trucking operation with a patented loading platform. We're excited to have this progressive company join the Daseke family.”
Tennessee Steel Haulers & Co.
Based in Nashville, Tenn., and founded in 1977 by Sid Stanley, TSH & Co. is now in its second generation of family leadership. Led by brothers and co-CEOs, Craig and Gregg Stanley and their brother-in-law, Michael Sheehan, chief business development officer, the company conducts business through a 100 percent asset-light operating model with operations throughout the East Coast, Southeast and a strong presence in Mexico.
“We have many owner-operators running under our authority, and that model has allowed us to grow at the right pace,” said Gregg Stanley. “We're dedicated to the success of our independent contractors, and we offer a very popular tractor and trailer lease-to-own program. We know if they're successful, it will make us successful.”
According to Craig Stanley, TSH & Co. spent several years developing a relationship with the Daseke management team prior to the decision to join the company.
“The way Daseke does business convinced our family that a merger was the right move for our future growth,” said Craig Stanley. “Don (Daseke) has developed a remarkable business model. He runs the company the way you would want it run. We were also quite impressed with all the other companies in the Daseke family which are very high quality and high integrity operations. Daseke understands passionate people built what we have at TSH & Co., and we are very protective of our legacy and future.”
The Roadmaster Group
The Roadmaster Group, based in Phoenix, Ariz., was originally formed in 2011. In 2016, it purchased Tri-State, one of the largest high-security cargo carriers in the industry. Led by John Wilbur, CEO of Roadmaster, the company brought in new ideas, such as a salary-type pay structure for drivers, instead of the industry norm of pay-by-the-mile.
“Guaranteed pay helped springboard our growth. We now have a very solid driver group and can attract new drivers to handle increased business,” said Wilbur. “We're excited about the growth potential of The Roadmaster Group with the added horsepower of Daseke and in cooperation with our new sister company, R&R Trucking. The time was right to become part of Daseke.”
Moore Freight Service
Based in Mascot, Tenn., (near Knoxville), Moore Freight Service delivers commercial sheet glass throughout the Midwest, East Coast and Canada to companies that cut the glass to size in finished products. Since it was formed in 2001 by CEO, Dan Moore, Moore Freight Service has been dedicated to becoming a market leader in this unique niche. It began with one contract and three trucks, and has since grown to a team of highly experienced industry veterans utilizing over 300 specialized trailers.
“Daseke's unique philosophy – 'investing in people' – was the concept that made myself and my family realize Daseke was the right fit for Moore Freight Service. With the support of Daseke, we are gearing up to become an even stronger force in our niche,” said Moore.
For more information, visit www.daseke.com.
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