Hub Group calls off acquisition of Interdom
A merger between two large intermodal marketing companies — Hub Group and Interdom — has been called off.
“As we neared the closing date, we mutually decided that the acquisition would not be in either of our best interests,' said David Yeager, chief executive officer of Hub. 'We still have great respect for Interdom and we know they will continue to be a strong player in the intermodal market. We continue to be optimistic about our future opportunities as we look at other acquisition candidates.'
Hub, the largest U.S. intermodal marketing company and third-largest truckload broker, arranges the movement of freight in containers and trailers over long distances. Hub Group contracts with railroads to provide transportation over the long-haul portion of the shipment and with local trucking companies for pickup and delivery.
Interdom Partners specializes in providing rail services to the international and domestic shipping community, and counts 60 steamship lines, as well as non-vessel-operating common carriers, forwarders and customs house brokers and beneficial cargo owners, as customers.
When the deal was first announced in June, Hub had said Interdom was a good fit both because of its large international business and because of Interdom’s involvement in the domestic reload business — filling international containers with domestic cargo as they are repositioned back to ports. With the growing trade imbalance, that’s a growing business.