Hub Group Inc. on Monday, April 4, announced that it purchased Exel Transportation Services for $83 million before post closing adjustments. ETS is now a wholly-owned subsidiary of Hub Group, operating independently under the name Mode Transportation.
“We are extremely pleased to welcome Mode’s Independent Business Owners, employees and customers into the Hub Group family,” says David Yeager, chairman and chief executive officer of Hub Group, based in Downers Grove, Ill. “This is an important day in the history of Hub. We are bringing together two strong and successful companies with highly complementary service offerings.”
Yeager describes Mode as one of the industry’s strongest third-party agent networks, with solid customer relationships and a diverse portfolio of solutions, including temperature-protected services. “We are looking forward to working with the Mode Transportation team to continue its growth and expansion in the years to come,” he says.
Mode Transportation consists of about 300 IBOs who sell and operate the business throughout North America, corporate offices in Dallas and Memphis, a company-managed operation in Dallas and a temperature-protected services division, Temstar, located in Lombard, Ill.
According to Hub Group, Mode Transportation’s sales for the year ended Dec, 31, 2010, were about $717 million; the largest components were intermodal revenue of $294 million, truck brokerage revenue of $279 million and LTL revenue of $85 million. Mode Transportation will remain headquartered in Dallas.
Key leadership, including President Jim Damman, will continue in their current roles with Mode Transportation. “We are excited to become a part of a well-respected transportation company with a history of growth and innovation,” Damman says. “We believe access to Hub Group’s dedicated fleet and efficient drayage operations, among other benefits, will allow us to outpace the competition.”