Saia, Inc. (Duluth, Ga.), a multi-regional less-than-truckload (LTL) carrier, acquired Madison Freight Systems, Inc. (MFS). Headquartered in Waunakee, Wis., MFS provides direct coverage to the state of Wisconsin and limited coverage in Illinois and Minnesota. Founded in 1943, MFS has 5 terminals and 200 employees. The operations of MFS will be integrated into Saia's direct service in Wisconsin.
"This acquisition advances Saia toward our strategic goal of increased density in our existing geography and providing full-state coverage," said Richard O'Dell, Saia president and CEO. "By enhancing direct coverage and the quality of service in our footprint, there are distinct advantages for our customers."
The purchase price of approximately $2.5 million is 3.0 times EBITDA. MFS has approximately $15 million in annualized revenues and is operating at break-even level.
"We welcome MFS employees and customers to Saia. We will begin exchanging freight immediately," said O'Dell. "This acquisition will leverage Saia's existing operations in the area including the recent addition of our second terminal in Chicago."