Hub Group Announces the Acquisition of Estenson Logistics

On May 25, 2017, Hub Group, Inc. (NASDAQ: HUBG), one of the nation’s leading freight transportation management companies, announced that its subsidiary, Hub Group Trucking, Inc., has entered into an agreement to acquire Estenson Logistics, LLC (“Estenson”). Estenson is the 14th largest dedicated contract carrier in North America, according to Transport Topics. The Company primarily offers road transportation of freight and logistics services. Moving forward, Estenson will be renamed Hub Group Dedicated Services and will operate under the Hub Group Trucking entity. Some highlights of the transaction are listed below:

  • Adds dedicated service offering to be named Hub Group Dedicated Services
  • Allows Hub Group to offer a more complete multi-modal solution to its customers
  • Accretive to earnings in 2017

  • Under the terms of the Agreement, Hub Group will acquire Estenson for a total transaction consideration of $308 million, which includes approximately $17 million in new equipment investments. A portion of the consideration will consist of the opportunity for Estenson to receive up to $6 million in the event certain EBITDA targets are met for the two years following the closing. According to David Yeager, Hub Group Chairman and CEO, “we [Hub Group] believe that gross-selling opportunities are in excess of $100 million in the next five years.” The transaction is expected to close on July 1, 2017.
    Read the full press release at

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