Hub drops another planned acquisition
For the second time this year, Hub Group Inc. has backed out of a proposed acquisition.
The intermodal company said Monday afternoon it has terminated its planned acquisition of DNJ Transportation, originally announced Sept. 12.
“The closing was expected to occur around the beginning of October but was subject to certain conditions and approvals. Several of these conditions were not met and therefore Hub elected not to proceed with the transaction,” the company explained. DNJ was a privately held intermodal trucking company that Hub was going to buy to expand its Comtrak drayage business.
In July, Hub said it was terminating a planned acquisition of Interdom Partners, a privately held non-asset-based intermodal marketing company. Hub had originally announced plans to buy that company in June, but David Yeager, Hub’s chief executive officer, explained, “As we neared the closing date, we mutually decided that the acquisition would not be in either of our best interests.”
Meanwhile, Hub announced record third quarter profit of $16.6 million, compared to $13.5 million in the same 2006 quarter.
The higher profit came despite a drop in revenues to $418 million for the quarter ended Sept. 30, compared to $432 million in the same 2006 period.
The company said intermodal revenue decreased 4.9 percent to $303 million because of a 2 percent volume decline and a 3 percent decrease related to price and mix. Truck brokerage revenue was flat at $77.1 million. Third quarter logistics revenue increased 4.1 percent to $37.4 million.
