Hub Group acquires Estenson Logistics for $306 million
The business will be named Hub Group Dedicated Services and will operate as part of Hub Group Trucking, based in Oak Brook.
Estenson was founded in 1999 and has grown to be the 14th largest dedicated contract carrier in North America, according to Transport Topics. The company was recently recognized as The Home Depot's Dedicated Van Partner of the Year for 2016. Estenson is a best in class operator with over 1,200 power units and over 5,000 trailers operating at approximately 120 customer locations. For its year ended Dec. 31, 2016, Estenson generated revenue of approximately $250 million.
With the addition of this service, Hub Group will offer a more complete multimodal solution to customers, which will include intermodal, truck brokerage, logistics and dedicated trucking. Hub Group expects to accelerate Hub Group Dedicated Services growth through cross-selling opportunities from its customer base. Hub Group's trucking operation will expand to over 3,800 power units, which will result in opportunities to more efficiently deploy equipment and drivers.
The company's leadership team, including CEO Tim Estenson, will continue in their current roles. Hub Group Dedicated Services will be headquartered in Mesa, Arizona.
We have been searching for an acquisition in the dedicated space for some time and have found an organization with a great fit in terms of culture, management style and business philosophy," said David Yeager, Hub Group chairman and chief executive officer. "Estenson has a long history of outstanding customer service and is focused on safety and providing its employees with a solid foundation for growth. We believe that cross-selling opportunities are in excess of $100 million in the next five years."
Hub Group expects the transaction will close on or about July 1, subject to the satisfaction of customary closing conditions and required approvals.