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DOWNERS GROVE, Ill.,
April 4, 2011 /PRNewswire/ --
Hub Group, Inc. (NASDAQ: HUBG), one of the nation's leading freight transportation management companies, announced today that it purchased Exel Transportation Services (ETS) 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 (IBOs), employees, and customers into the Hub Group family," said
David Yeager, Hub Group Chairman and Chief Executive Officer. "This is an important day in the history of Hub. We are bringing together two strong and successful companies with highly complementary service offerings. 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. We are looking forward to working with the Mode Transportation team to continue its growth and expansion in the years to come."
Mode Transportation consists of about 300 IBOs who sell and operate the business throughout
North America, corporate offices in
Memphis, a Company Managed Operation in
Dallas and a temperature protected services division, Temstar, located in
Mode Transportation's sales for the year ended
December 31, 2010 were approximately
$717 million. The largest components were: intermodal revenue of
$294 million, truck brokerage revenue of
$279 million, and LTL revenue of
Key leadership, including President
Jim Damman, will continue in their current roles with Mode Transportation. Jim stated, "We are excited to become a part of a well respected transportation company with a history of growth and innovation. We believe access to Hub Group's dedicated fleet and efficient drayage operations, among other benefits, will allow us to outpace the competition."
Mode Transportation will remain headquartered in