Hub Group expands with acquisition of TAGG Logistics

OAK BROOK - Hub Group Inc. Monday said it acquired St. Louis-based TAGG Logistics, a provider of warehousing and transportation services, for $103 million.

TAGG specializes in e-commerce, B2B and omnichannel fulfillment solutions. Since its founding in 2006, TAGG has grown into a nationwide provider with over 4 million square feet of

"We are excited to welcome TAGG's employees, customers and vendors to Hub Group," said Hub Group Chairman and CEO David Yeager. "This acquisition advances our strategy to provide the industry's premier supply chain solutions and expands our position in the long term, high growth e-commerce fulfillment sector."

The addition of TAGG is an important strategic milestone toward achieving Hub Group's goal of $5.5-$6.5 billion of revenue by 2025, the company said. TAGG expects to generate approximately $200 million of annual revenue in 2022. TAGG has approximately 800 employees at its 18 facilities.

Cash consideration for the transaction of $103 million was funded with cash on hand. In connection with the acquisition, Hub Group granted contingent compensation to the TAGG senior management team to incentivize their retention and drive continued growth of the business.

Hub Group offers comprehensive transportation and logistics management solutions, with 6,000 employees and drivers across the globe.