OAK BROOK, Ill. — Hub Group has acquired Choptank Transport, Inc., expanding its brokerage business to more than $1 billion of revenue.
According to a news release, the acquisition “bolsters Hub Group’s presence in the refrigerated transportation space and adds a complementary offering to serve its customers’ multimodal transportation and logistics needs. The addition of Choptank is an important strategic milestone toward achieving Hub Group’s goal of over $6 billion of revenue by 2025.”
Hub Group Chairman and CEO David Yeager said of the acquisition: “We are excited to welcome Choptank’s employees, customers and carriers to Hub Group. This acquisition delivers on our strategy to provide the industry’s premier supply chain solutions and will advance our position in the growing cold-chain segment.”
The news release stated that the acquisition enhances Hub’s over-the-road refrigerated transportation solutions offering and complements its growing fleet of 450 refrigerated intermodal containers.
Hub Group intends to further invest in its refrigerated transportation offering by purchasing 550 refrigerated intermodal containers in 2022, bringing the size of its fleet to 1,000, according to the news release.
“Choptank adds scale to Hub’s brokerage service line, with combined revenue of over $1 billion across dry van, refrigerated and LTL freight expected for 2021,” the news release stated. “The acquisition is expected to result in numerous complementary cross-selling opportunities for both Hub’s and Choptank’s customer bases. With this transaction, Hub’s non-asset business lines will contribute over 40% of total revenue.”
In addition to its carrier network, Choptank’s 400 employees will join Hub Group.
“Our team is excited to join Hub Group,” said Choptank CEO Geoff Turner. “We share similar values of service, integrity and innovation, which we are excited to bring together to fuel our continued growth. Choptank brings our wealth of industry experience, a strong carrier network, and innovative technology that, when combined with the industry presence and reputation of Hub Group, will unlock value for our customers and move our business forward.”
Funding for the transaction of $130 million was provided by cash on hand, the news release stated, adding that Choptank expects to generate over $450 million of annual revenue in 2021.
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