Hub expanding drayage operations with acquisition
Hub Group Inc. is expanding its involvement in the drayage business through acquisition of another trucking firm.
Hub said its Comtrak Logistics Inc. drayage subsidiary has entered into a definitive agreement to acquire the assets of DNJ Transportation Inc. and its affiliates for $12.1 million, subject to adjustment based on DHJ’s working capital at closing.
DNJ is a privately held intermodal trucking company whose primary focus is international drayage for the intermodal sector. DNJ was established in 1975 and is headquartered in Cicero, Ill. It has 116 drivers, of which 60 percent are owner operators. DNJ has four terminals located in Illinois and Indiana. DNJ’s revenue in 2006 was about $14 million.
Hub acquired Comtrak Logistics Inc. on Feb. 28, 2006. Comtrak is a transportation company whose services include primarily rail and international drayage for the intermodal sector. Comtrak and another Hub subsidiary, Quality Services, owned 318 tractors, leased 44 tractors, leased or owned 701 trailers and employed 328 drivers and contracted with 789 owner-operators.
Hub has terminals in Atlanta, Birmingham, Charleston, Charlotte, Chattanooga, Chicago, Cleveland, Columbus, Dallas, Houston, Huntsville, Jacksonville, Kansas City, Los Angeles, Memphis, Nashville, Perry, Savannah, St. Louis, Stockton, and Tampa.
David P. Yeager, Hub’s chief executive officer, said, “We are excited about adding DNJ to our Comtrak drayage business. DNJ’s international intermodal business will provide us with immediate growth in this key market. The acquisition is consistent with our strategic plan to increase the amount of drayage we perform.”
Joe Tovo III, vice president of DNJ, will join the Comtrak team as manager of international drayage.
