William B. Cassidy | Apr 04, 2011 12:19PM EDT
Intermodal transportation giant Hub Group acquired Exel Transportation Services, a $717 million third-party logistics company, from Deutsche Post subsidiary Exel.
The $83 million acquisition extends Hub Group's reach across transportation modes and deeper into truckload, less-than-truckload and refrigerated transportation.
The acquisition boosts Hub Group's annual revenue above $2.5 billion.
The former Exel subsidiary will operate as Mode Transportation, a wholly owned subsidiary of $1.83 billion Hub Group, with headquarters in Dallas.
Hub's purchase is the latest in a series of logistics acquisitions that herald an improving economy. It's one of the largest deals since the $512.6 million acquisition of ATC by Genco Supply Chain Solutions last year.
Hub Group Chairman and CEO David Yeager said the companies have "highly complementary business offerings" in intermodal and truck transportation.
Mode Transportation operates through a network of about 300 independent business owners, with offices in Dallas and Memphis, Tenn. It has a temperature-protected services division, Temstar, in Lombard, Ill.
Mode had $294 million in intermodal sales, $279 million in third-party truck brokerage sales and $85 million in LTL revenue last year, Hub Group said.
The company's key officers will stay with Mode, including President Jim Damman.
-- Contact William B. Cassidy at wcassidy@joc.com.
