Oak Brook, Ill.-based Hub Group will pay $306 million for the contract logistics firm, which owns and operates more than 1,200 power units and 5,000 trailers.
Hub Group, Inc. has agreed to acquire the business of contract trucking company Estenson Logistics, LLC for approximately $306 million, the company said Thursday.
Estenson, headquartered in Mesa, Ariz., reported revenues of $250 million last year. By comparison, Hub Group’s sales stood at $3.6 billion in 2016.
Ranked as the 14th largest dedicated contract carrier in North America by Transport Topics, Estenson has over 1,200 power units and over 5,000 trailers operating from 120 customer locations. Major customers include Home Depot, which named Estenson “Dedicated Van Partner of the Year for 2016.”
Hub said it expects the transaction to close on or about July 1, 2017, subject to the satisfaction of customary closing conditions and required approvals. Following the closing, the business will be named Hub Group Dedicated Services and will operate as part of Hub Group Trucking.
“We have been searching for an acquisition in the dedicated space for some time and have found an organization with a great fit in terms of culture, management style and business philosophy,” said David Yeager, Hub Group chairman and chief executive officer. “Estenson has a long history of outstanding customer service and is focused on safety and providing its employees with a solid foundation for growth. We believe that cross-selling opportunities are in excess of $100 million in the next five years. We are looking forward to working with the Estenson team.”
Hub said the addition of Estenson means the company will be able to “offer a more complete multi-modal solution to its customers, which will include intermodal, truck brokerage, logistics and dedicated trucking.”
The company’s leadership team, including CEO Tim Estenson, will continue in their current roles and Hub Group Dedicated Services will be headquartered in Mesa.
Hub Group to purchase Estenson Logistics
