The combined group will own some 23,000 tractors and 77,000 trailers and will generate revenue of $5.1 billion.Īccording to PWC’s Global Transportation and Logistics M&A Deals Insights report, published earlier this year, deals in the trucking category were on the rise globally in 2016, contributing to the highest share of deal value and generating the highest average deal size of all the transportation and logistics sectors last year. The move follows news in April that two of the US’s largest trucking companies, Knight Transportation and Swift Transportation, had agreed to a $6 billion all-scrip merger deal. Hub will have more than 3,800 tractive units after the acquisition. Co-founder and CEO Tim Estenson will remain in his current role.Įstenson has over 1,200 tractive units and 5,000 trailers operating at approximately 120 customer locations. Estenson generated revenue of $250m last year while Hub Group’s turnover was $3.6 billion.įollowing the closing of the transaction, which is expected in July, the business will be named Hub Group Dedicated Services and will operate as part of Hub Group Trucking. The acquisition price, excluding certain recent asset purchases made by Estenson, was agreed at a multiple of 6.75 times Estenson’s 2016 adjusted earnings before interest, tax, depreciation and amortisation (Ebitda). “We believe that cross-selling opportunities are in excess of $100m in the next five years,” said Yeager. Hub’s top 30 clients spend more than $2 billion a year on dedicated services, he added.
Hub chairman and CEO David Yeager said his company had been searching for an acquisition in this market segment for the past two years, to help it provide “a more complete multimodal solution”. US-based multimodal services provider Hub Group has agreed to acquire dedicated trucking company Estenson for $306m.
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