Schneider National, Inc. says it is no longer pursuing plans and related activities to spin off and execute an initial public offering of its wholly owned subsidiary, Schneider Logistics, Inc.
The decision was based on the current state of the equity capital markets, as well as the fact that Schneider National has been able to allocate substantial resources to Schneider Logistics and does not see a current need to access outside equity capital to fund SLI’s future growth.
“Over the past 12 months, we have invested a significant portion of the capital expected in proceeds from an IPO into SLI’s SUMIT (TM) technology platform. We also are committed to continue the necessary capital funding underlying SLI’s aggressive growth plans to be a significant player in global logistics,” said Don Schneider, president of Schneider National.
“We will continue to take strong steps to position Schneider Logistics as a dominant player in global supply chain integration. Our projected 2001 growth rate of 45 percent attests to the fact that our services are creating recognized value for a growing number of customers,” said Chris Lofgren, chief executive officer of Schneider Logistics.
Schneider Logistics will continue to operate as a wholly owned subsidiary of Schneider National. It will function as a separate non-asset based company, providing a suite of services in the logistics marketplace.
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