Hub Group Acquires Choptank Transport For $130M

Hub Group Inc HUBG has acquired Choptank Transport, Inc, a cold-chain-focused third-party logistics company, for $130 million in cash.
The acquisition enhances Hub's over-the-road refrigerated transportation solutions offering and complements its fleet of 450 refrigerated intermodal containers.
Hub Group intends to further invest in its refrigerated transportation offering by buying 550 refrigerated intermodal containers in 2022, taking the size of its fleet to 1,000.
Choptank adds scale to Hub's brokerage service line, with combined revenue of over $1 billion across the dry van, refrigerated, and LTL freight expected for 2021. Choptank expects to generate over $450 million of annual revenue in 2021.
Hub Group noted the addition of Choptank as an important strategic milestone toward achieving its goal of over $6 billion of revenue by 2025.
The company expects the acquisition to result in numerous cross-selling opportunities between their customer bases.
Hub Group funded the deal with cash on hand. It held cash and cash equivalents of $246 million as of June 30, 2021.
Price Action: HUBG shares are trading higher by 0.05% at $73.31 on the last check Tuesday.