Hub Group buying Interdom Partners
Hub Group, the Downers Grove, Ill.-based freight transportation company, said it has entered into a definitive agreement to acquire the assets of Interdom Partners, a privately held non-asset-based intermodal marketing company that specializes in providing 20- and 40-foot container services to international and domestic customers.
Interdom was established in 1987, has about 50 employees and is headquartered in Palos Heights, Ill.
Interdom owns and operates two non-asset-based drayage companies in Chicago and Los Angeles with about 40 owner-operators. These drayage companies provide services for Interdom and other intermodal customers. The businesses being acquired generated about $90 million in revenue in 2006.
Hub said it will pay about $26 million in cash at closing, which is expected to occur at the end of June. The purchase price will be subject to adjustment based on Interdom’s retained earnings and working capital at closing.
In addition, the agreement provides for a possible earn-out bonus for the sellers in 2007 and 2008. Those payments would not exceed $5 million.
The closing is subject to certain customary closing conditions and approvals.
“We are very excited about this strategic acquisition. We have known Interdom for over 20 years as both a vendor and formidable competitor,” said David Yeager, Hub’s chief executive officer. “Under the leadership of its founder and president, Rick Rudie, Interdom has developed a market-leading position in the international container segment. Interdom is a leading provider of third-party international services and the acquisition will provide Hub with an entry into this growing market.
'Interdom also operates a sizable domestic reload business. We plan to combine our domestic reload business with Interdom’s to create what we believe will be the largest player in this market. This combined entity will operate under the Interdom name and will be managed by Mr. Rudie,” Yeager said.