Hub Group acquires Choptank Transport for $130 million

OAK BROOK - Hub Group Tuesday announced its acquisition of Choptank Transport Inc., an industry-leading provider of refrigerated transportation solutions, for $130 million.

Since its founding in 2000, Choptank has achieved one of the fastest growth rates in the industry with its expansive network of more than 20,000 carriers throughout North America, specializing in the transportation of chilled and frozen products. The acquisition bolsters Hub Group's presence in the refrigerated transportation space and adds a complementary offering to serve its customers' multimodal transportation and logistics needs, the company said.

Cash consideration for the transaction of $130 million was funded by cash on hand. In connection with the acquisition, Hub Group granted contingent compensation to the owners and senior management team of Choptank, based in Preston, Maryland, to incentivize their retention. Choptank expects to generate over $450 million of annual revenue in 2021.

"We are excited to welcome Choptank's employees, customers and carriers to Hub Group," said David Yeager, Hub Group chairman and CEO. "This acquisition delivers on our strategy to provide the industry's premier supply chain solutions, and will advance our position in the growing cold-chain segment."

The acquisition enhances Hub's over-the-road refrigerated transportation solutions offering, and complements its growing fleet of 450 refrigerated intermodal containers. Hub Group intends to further invest in its refrigerated transportation offering by purchasing 550 refrigerated intermodal containers in 2022, bringing the size of its fleet to 1,000.

In addition to its expansive carrier network, Choptank's 400 employees will join Hub Group. Choptank adds scale to Hub's brokerage service line, with combined revenue of over $1 billion across dry van, refrigerated and LTL freight expected for 2021.