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 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.

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 Dave Yeager, 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 Dan Sanker, 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.”

Robert W. Baird & Co. 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.
Start your FREE subscription today!

Article Topics

Hub Group · All Topics
Latest Whitepaper
How to Manage Increasing Labeling Demands
Download the report to learn best practices for managing those increasing label demands.
Download Today!
From the August 2019 Logistics Management Magazine
The staff of Logistics Management (LM) is honored to present the logistics and transportation community with the results of our 36th Annual Quest for Quality Survey
Ocean: Protecting margins in a soft market
Warehouse Voice Technology Speaks for Itself
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
Creating the ROI for Multi-Carrier Parcel Shipping Solutions
This webinar will reveal how manufacturers, retailers, and 3PLs can utilize their own data to identify and demonstrate ROI for multi-carrier parcel shipping by leveraging state-of-the art business intelligence to increase performance.
Register Today!
EDITORS' PICKS
36th Annual Quest for Quality Awards: Winners in the spotlight
Which carriers, third-party logistics (3PL) providers and U.S. ports have reached the pinnacle of...
State of Logistics in 2019: What’s next?
Tight capacity, high rates, rapid e-commerce growth and a booming economy fueled an 11.45% rise in...

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...
amazon com best sellers

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