Hub Group Buys Fulfillment Solutions Provider TAGG Logistics; Grows Footprint

Hub Group Inc HUBG has acquired TAGG Logistics, a provider of e-commerce, B2B, and omnichannel fulfillment solutions, for $103 million, funded with cash on hand.
Hub Group also granted contingent compensation to the TAGG senior management team to incentivize their retention and drive growth.
Founded in 2006, TAGG has over 4 million square feet of warehousing space throughout the U.S. TAGG has approximately 800 employees at its 18 facilities.
The transaction expands Hub Group's consolidation and fulfillment solutions offering, growing its footprint to 9 million square feet.
Hub Chairman and CEO David Yeager said, "This acquisition advances our strategy to provide the industry's premier supply chain solutions and expands our position in the long term, high growth e-commerce fulfillment sector."
TAGG expects to generate ~$200 million of annual revenue in 2022.
Hub noted that adding TAGG is an important milestone toward achieving its goal of $5.5-$6.5 billion in revenue by 2025.
As of June 30, 2022, HUBG held cash and equivalents of $298 million.
Price Action: HUBG shares are trading lower by 1.30% at $84.10 on the last check Monday.