Poor market conditions have scuttled Schneider National's plans to spin off its logistics subsidiary, Schneider Logistics Inc. (SLI). The Green Bay, WI-based truckload giant said it halted efforts to execute an IPO of SLI thanks to the current state of the equity capital markets.
“Over the past 12 months, we've invested a significant portion of the capital expected in proceeds from an IPO into Schneider Logistics' Summit technology platform,” said Don Schneider, president of Schneider National.
According to Chris Lofgren, Schneider Logistics' CEO, SLI will continue to take strong steps to position itself as a dominant player in global supply chain integration. “Our projected 2001 growth rate of 45% attests to the fact that our services are creating recognized value for a growing number of customers,” he noted.
Industry analyst Martin Labbe thinks Schneider is making the right decision. “Right now the market is not good. If they're expecting an IPO of $30 and can only get $18, my guess is it would be a significant loss,” Labbe told FLEET OWNER.
Schneider Logistics will continue to operate as a wholly owned subsidiary of Schneider National.
