Hub Group acquires ETS
Freight transportation management firm Hub Group said Monday it has acquired Exel Transportation Services for $83 million before post closing adjustments.
ETS is a provider of agent-based intermodal and truck brokerage services. It was previously an affiliate of Exel, a subsidiary of Deutsche Post DHL. The company will now operate as a subsidiary of Hub, under the name Mode Transportation.
'Mode is the strongest third-party agent network in the industry with outstanding customer relationships and a diverse portfolio of solutions, including temperature protected services,' said David Yeager, Hub Group chairman and chief executive officer, in a statement. 'We are looking forward to working with the Mode Transportation team to continue its growth and expansion in the years to come.'
Mode comprises about 300 independent business owners, who sell and operate the business throughout North America. The company's corporate offices are located in Dallas and Memphis, Tenn. Mode's temperature protected services division, Temstar, is located in Lombard, Ill.
Mode's sales for the year ended Dec. 31 were about $717 million. The largest components were intermodal revenue at $294 million, truck brokerage revenue of $279 million and less-that-trailerload of $85 million.
Key ETS management, including President Jim Damman, will continue in their current roles with Mode. The company will also remain based in Dallas, Hub said.