Founded in 1985, Joplin, Missouri-based TDC provides regional service in the central U.S., including the Midwest. The carrier has a fleet of 141 power units, according to the Federal Motor Carrier Safety Administration.
“TDC’s regional coverage, focus on safety, providing high level service, disciplined management style, and family culture are exactly what we are looking for as we build and increase overall capacity solutions for truckload shippers in the USA,” said Dave Gibbs, IPS president and CEO.
TDC will retain its brand and operate as a separate segment of IPS. TDC President Regan Stephens will continue to run the fleet.
“We believe this should be a very positive transaction with minimal revenue churn,” Gibbs added.
Terms of the transaction were not disclosed.
“The timing was right for some of our family to retire out of TDC, and the geographical fit was perfect between our companies,” Stephens said.
IPS transferred 100% of its stock to employees through an employee stock ownership plan in 2013, which Stephens credited as a reason to sell to IPS. “The fact that our TDC people got to become part of an ESOP was a great benefit. The reasons that make this right for our people kept piling up.”
Trucking M&A has been used by some as a growth outlet due to headwinds recruiting and retaining drivers. Deal flow has been high throughout the pandemic among smaller fleets, but the larger carriers are becoming more active.
So far in July, two large deals have been recorded. Knight-Swift Transportation (NYSE: KNX) acquired less-than-truckload carrier AAA Cooper in a $1.35 billion transaction, and Werner Enterprises (NASDAQ: WERN) purchased a majority stake in two regional carriers for $142 million.
Founded in 1937, Murray, Kentucky-based IPS is the parent company of the Paschall companies, which include logistics and trailer leasing operations. The combined group operates a fleet of more than 1,000 trucks and 3,000 trailers, providing one-way, dedicated, regional and long-haul TL services in the U.S. and Mexico.
TDC was represented in the transaction by Transport Capital Partners.