Hub Group to acquire CaseStack

Earlier today, freight transportation services provider Hub Group announced it plans to acquire CaseStack for $225 million in cash. Established in 1999, Santa Monica, Calif.-based CaseStack has two primary business units. One unit, CaseStack Logistics Services, provides consolidation services for consumer packaged goods (CPG) companies that sell into the North American retail market. And its other unit, CaseStack Technology Services functions as a technology-enabled truck brokerage serving the LTL (less-than-truckload) market.

By ·

Earlier today, freight transportation services provider announced it plans to acquire for $225 million in cash.

Established in 1999, Santa Monica, Calif.-based CaseStack has two primary business units. One unit, CaseStack Logistics Services, provides consolidation services for consumer packaged goods (CPG) companies that sell into the North American retail market. And its other unit, CaseStack Technology Services functions as a technology-enabled truck brokerage serving the LTL (less-than-truckload) market.

Non-asset based CaseStack generated revenue of roughly $242 million for the 12-month period ended September 30, 2018, as well as EBITDA at roughly $22 million. CaseStack has around 280 employees.

Hub Group officials said they expect this transaction to be made official in early December.

“We are delighted to welcome CaseStack’s employees, customers, carriers and service providers into the Hub Group family,” said , Hub Group’s Chairman and Chief Executive Officer, in a statement.  “This acquisition further advances our vision to diversify and enhance our service offering to our customers.  We are very impressed with the business that the CaseStack management team has built.  We believe there will be significant opportunities to enhance network optimization with our customers.  Similar to Hub, CaseStack brings an established high service, performance-driven culture.”

“The CaseStack team is excited to join Hub Group,” said , CEO and founder of CaseStack, in a statement.  “We believe Hub is the perfect fit for us.  Our core values, including collaboration, determination and excellence, are aligned.   The CaseStack team will continue to provide retailer consolidation programs to consumer packaged goods customers and technology enabled brokerage services.  We are thrilled that Hub will sponsor our growth by introducing new customers and enhancing our services with assets, drivers and technology.  There couldn’t be a better team to help our customers with their challenges.  This combination will provide terrific opportunities for our customers, service providers and team members.”

 analyst Ben Hartford wrote in a research note that with CaseStack to become part of Hub Group, Hub views the potential for cross-selling between CaseStack and Hub's offerings as substantial given little existing overlap between customer bases, as well as continued organic growth for CaseStack itself (segment-leading market share, with 500 customers in a 6,000-15,000-customer market).


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.


Article Topics

Hub Group · All Topics
Latest Whitepaper
Making the Case for Using a Transportation Management System for Parcel Shipping
We discuss the key pain points that all parcel shippers are dealing with right now and show how a multi-carrier transportation management system can help reduce costs, improve efficiencies, and improve the organizational bottom line.
Download Today!
From the June 2019 Logistics Management Magazine
Over the years, we’ve tried to steer clear of too many themed issues because we’re proud to offer our readers a wide breadth of industry information. The logistics and transportation market is so diverse, and shippers are looking to solve a multitude of challenges across a number of modes and services areas—never just one.

Warehouse Execution Systems (WES) Evolves Beyond “inside the four walls”
Got labor? How supply chain companies are recruiting talent during a labor crunch
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
Driving 20% More Revenue with APIs
The lack of connectivity between your systems and processes is your #1 barrier to efficiency and growth. Having helped some of the world's top logistics providers, Software AG shows how APIs can help you move faster than ever.
Register Today!
EDITORS' PICKS
Got labor? How supply chain companies are recruiting talent during a labor crunch
How are companies faring in the race to recruit and train high-level supply chain talent in a market...
35th Annual Salary Survey: Compensation matters more than ever
While job satisfaction remains the primary reason for today’s logistics managers to stay with one...

2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...
2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...
amazon com best sellers

У нашей компании популярный блог про направление купить футбольный мяч киев start-sport.com.ua
litecoin คืออะไร