Oak Brook, IL — Hub Group, Inc. announced that its subsidiary, Hub Group Trucking, Inc., has entered into an agreement to acquire the business of Estenson Logistics, LLC for approximately $306 million.
Hub Group expects the Transaction will close on or about July 1, 2017, subject to the satisfaction of customary closing conditions and required approvals. Following the closing of the Transaction, the business will be named Hub Group Dedicated Services and will operate as part of Hub Group Trucking.
“We are extremely pleased to welcome Estenson’s drivers, employees, and customers into the Hub Group family,” said David Yeager, Hub Group Chairman and Chief Executive Officer. “We have been searching for an acquisition in the dedicated space for some time and have found an organization with a great fit in terms of culture, management style and business philosophy. Estenson has a long history of outstanding customer service and is focused on safety and providing its employees with a solid foundation for growth. We believe that cross-selling opportunities are in excess of $100 million in the next five years. We are looking forward to working with the Estenson team.”
Estenson was founded in 1999 and has grown to be the 14th largest dedicated contract carrier in North America, according to Transport Topics. The Company was recently recognized as The Home Depot’s Dedicated Van Partner of the Year for 2016. Estenson is a best in class operator with over 1,200 power units and over 5,000 trailers operating at approximately 120 customer locations. For its year ended December 31, 2016, Estenson generated revenue of approximately $250 million.
With the addition of this dedicated service, Hub Group will offer a more complete multi-modal solution to its customers, which will include intermodal, truck brokerage, logistics and dedicated trucking. Hub Group expects to accelerate Hub Group Dedicated Services growth through cross-selling opportunities from its diverse customer base. Hub Group’s trucking operation will expand to over 3,800 power units, which will result in opportunities to more efficiently deploy equipment and drivers. The Company’s leadership team, including Tim Estenson, CEO, will continue in their current roles. Hub Group Dedicated Services will be headquartered in Mesa, Arizona.
“We built our company from the ground up and we are passionate about a superior customer experience and employee satisfaction,” said Tim Estenson. “It was extremely important to me personally to find a home for us that shares those values. This is why we are extremely excited to be a part of the Hub Group family and I am looking forward to staying on board to see our company continue to flourish.”