5.1 C
Saturday, April 13, 2024

Estenson Logistics Sold to Hub Group

Estenson Logistics Sold to Hub Group

Hub Group is ramping up its dedicated transportation offerings with the $306 million purchase of Estenson Logistics.

“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’s chairman and CEO. Estenson operates over 1,200 power units and 5,000 trailers at 120 customer locations.

Once the deal is finalized, the business will be named Hub Group Dedicated Services, and will operate as part of Hub Group Trucking. The purchase allows Hub to offer a more complete operation, which includes intermodal, truck brokerage, logistics and dedicated.

Hub Group’s trucking operation will expand to over 3,800 power units through the deal. The leadership team, including CEO Tim Estenson, will remain in place.

During the first quarter of 2017 Hub Group reported its net income fell 42.5 percent to $10.3 million from a year earlier.

“Despite the current challenging market conditions, we remain committed to our strategy to increase market share by providing multi-modal solutions to our clients. We are making strategic investments in our people and technology to strengthen our competitive position in the market,” Yeager said at the time.