Dive Brief:

• Schneider National, the largest privately held freight transportation company in the U.S., will pursue an initial public offering next year, various news outlets reported based on a company statement released last week.
• The offering could earn the company up to $700 million and value it at $5 billion, according to a Reuters exclusive on the company's underwriting process last month. In the statement, the company noted its main purpose was to retain family ownership and control.
• The 80-year old trucking company offers various intermodal services, but has benefited largely from its capacity to transport heavy goods, which competitors UPS and FedEx have struggled with, Logistics Management reports. Schneider completed two acquisitions in that market earlier this year.

Dive Insight:

Rather than buckle under and brace for a weakened freight market, Schneider's IPO announcement reveals it may be looking for an immediate source of cash to continue the company's expansion through increased acquisitions, and ramp up its competitive advantage against other national freight transporters.

A capital influx of $700 million can go a long way in the trucking industry, particularly since the market continues to be dominated by privately owned or regional carriers. By contrast, the weakened market makes buyouts more likely.

The public offering will not take place until next year, giving the company plenty of time to prove its worth and competitiveness against the likes of UPS, FedEx, J.B. Hunt and Swift. That may not be too difficult, though, as the company is the only private company in the industry's Top 10, and among the largest truckload providers.