National trucking firm Heartland Express has acquired 100 percent of the outstanding stock of Tacoma-based Interstate Distributor Co. from Saltchuk Resources, a Seattle family-owned investment firm.
Heartland, headquartered in North Liberty, Iowa, reportedly paid $113 million in the deal. Interstate’s truckload business generated some $325 million in total revenue last year. It previously acquired the local transportation firm, Gordon Trucking in Pacific.
“We are excited to add IDC’s high quality drivers, experienced personnel, and strong customer base to Heartland’s operations,” said Michael Gerdin, its president and CEO. “IDC is an excellent operational fit, as its terminal network has nearly direct overlap with our current locations. Heartland will gain significant additional traffic density in the West, and our stronger eastern network will improve service for IDC’s customers in the East.”
The transaction was funded through $94 million of Heartland’s existing cash, plus assumption of approximately $23 million of Interstate’s debt, and acquisition of $4 million in cash on Interstate’s balance sheet. Heartland expects to pay off all of Interstate’s debt after closing.
A release from Heartland said that Interstate’s headquarters and national terminal network will be consolidated together “over the near to medium term.”
Interstate was founded in 1933 and primarily provides dry van truckload services in the western and southeastern United States. Seattle-based Saltchuk had acquired Interstate in 2011 from its founding family members.
Its fleet includes about 1,350 company tractors, 220 tractors supplied by independent contractors, and 4,700 trailers.