As steel giants wind their way across highways and aluminum gleams with industrial brilliance, who safeguards their secure and efficient transportation? Daseke Inc., North America's premier specialized transport and logistics provider, continues to expand its flatbed transport capabilities through strategic acquisitions. The recent purchase of Builders Transportation Co. not only broadens Daseke's service portfolio but reinforces its leadership in this competitive sector.
Acquisition Details
Texas-based Daseke Inc. announced last week the successful acquisition of Memphis-headquartered Builders Transportation Co., a respected operator specializing in steel, aluminum, and metal product transportation. The $53.8 million transaction includes $3.4 million in Daseke stock. Financial reports indicate Builders Transportation generated approximately $72.4 million in revenue and $9.7 million in adjusted EBITDA over the twelve months ending June 2018.
Operational Strengths
Builders Transportation maintains an impressive fleet of 300+ company trucks and nearly 500 spread-axle trailers. The company focuses on conventional flatbed operations across the contiguous United States, with particular density in the eastern two-thirds of the country. Its expertise spans coiled steel, wire products, structural steel, sheet metal, aluminum products, construction materials, cast iron, piping, and machinery transport. The carrier has earned multiple "Carrier of the Year" awards from core clients.
Strategic Rationale
Daseke CEO Don Daseke emphasized the cultural alignment: "We've monitored Builders Transportation for some time, impressed by their focused operations and family-rooted culture. Their partnerships with blue-chip clients and employee dedication mirror our other operating companies. With continuous operations since 1954 and deep generational leadership, they'll make an excellent addition to our family."
The acquired company traces its origins to 1961 when Frank Phillips purchased a six-truck operation, later growing it under family stewardship. Current COO Gene Phillips noted the advantages of joining Daseke's network: "We're aligning with the 'who's who' of flatbed and specialized transport. We anticipate sharing operational best practices and leveraging Daseke Fleet Services' consolidated purchasing power to reduce costs and strengthen competitiveness."
Market Perspective
Industry analysts view this as part of Daseke's ongoing consolidation strategy in heavy transport. Cowen and Co. analyst Jason Seidl noted the transaction should generate "modest synergies" while advancing sector integration.
Growth Implications
The acquisition delivers multiple strategic benefits:
• Revenue expansion: Adds $72+ million annual revenue stream
• Margin enhancement: Incorporates 13% EBITDA margin operations
• Service diversification: Deepens metals transport expertise
• Geographic expansion: Strengthens eastern U.S. coverage
• Operational synergies: Potential cost savings through integration
Daseke continues executing its dual growth strategy of targeted acquisitions and organic development, maintaining investments in technology and operational efficiency to preserve its market leadership position.