Hub Group sells Mode Transportation subsidiary

Hub officials said this sale represents the byproduct of an exploration of strategic alternatives for Mode that was undertaken by the Hub Group Board of Directors, which they said is part of an ongoing review of alternatives for creating shareholder value that it announced in August.

By ·

Freight transportation services provider  announced late last week it entered into a definitive agreement to sell , a subsidiary company, to an affiliate of global private investment firm, , for roughly $238.5 million.

Hub officials said this sale represents the byproduct of an exploration of strategic alternatives for Mode that was undertaken by the Hub Group Board of Directors, which they said is part of an ongoing review of alternatives for creating shareholder value that it announced in August. The sales figure, Hub said, is equivalent to 10x Mode’s adjusted EBITDA for the 12 months ended June 30, 2018. And it added that proceeds from this sale will go towards acquisitions of businesses in both new and existing service lines, with Hub saying it is focused on acquiring high quality businesses that will deepen its relationships with its customers, strengthen its platform for growth and create shareholder value.

"Mode has an excellent management team, with a strong, solid agent base and loyal customers,” said , in a statement. “While Mode has been very successful, there was a lack of strategic alignment with Hub's centralized business model.  The talented Mode team, combined with York's expertise and significant resources, positions Mode well for realizing the next chapter of its growth."

said that Mode is an exceptional agent-based transportation solutions provider differentiated by customer-specific expertise, offerings across all modes of freight transportation and leading edge technology and analytics. 

“We are excited about joining forces with York and the support they will provide as we execute our growth plan,” he said.  “We look forward to continuing to serve our agent, customer and carrier community." 

Hub Group acquired Dallas-based Mode in April 2011, when it acquired asset-light transportation company Exel Transportation Services (ETS), a subsidiary of Deutsche Post World Net, for $83 million.

Hub subsequently re-named Exel as Mode Transportation. Mode is a non-asset 3PL offering truckload, less-than-truckload, intermodal, ocean, rail, air, and managed transportation services. Its functions through a network of independent business owners that sell and operate the business throughout North America.

When Hub acquired Mode, CEO Yeager said that Mode’s services were very complimentary to Hub’s and would give Hub more scale. He also noted that it was exactly the kind of acquisition Hub had been patiently awaiting: a strong operating and sales organization that compliments Hub’s core competencies.

Evan Armstrong, president of supply chain consultancy Armstrong & Associates, call the selling off of Mode a "good move" by Hub.

"With Hub Highway’s and Unyson’s domestic transportation management businesses growing well and Hub’s market-leading intermodal offering, Mode had become an operational duplicate which was not needed strategically," he said. "It makes sense to sell it off to gain some 'dry powder' for more strategically aligned acquisitions. 
 


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

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.


Latest Whitepaper
How to Minimize Costs with Enterprise Labeling
The right labeling solution will allow companies to stand up to their everyday challenges and add value.
Download Today!
From the February 2019 Logistics Management Magazine Issue
The editorial staff of Logistics Management has focused much of this issue on helping global shippers better manage what they can control. And, we shed some light on the technology and partnership options that savvy shippers are putting to work to help mitigate risk and dull some of the headaches.
State of Global Logistics: Time for a reality check
Preview some of the innovations you will see at ProMat 2019
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
Freight Tech: Separating Need from Noise
In this webinar experts will share practical advice for selecting solutions that provide quick time-to-value while readying your supply chain for long-term success.
Register Today!
EDITORS' PICKS
Ember: Finding the perfect temperature
Inventor of the world’s first temperature-controlled mugs turns to a single third-party logistics...
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...
The Logistics News that Shaped 2018
Every year at this time, group news editor Jeff Berman combs through the mountain of news that was...
https://bestseller-sales.com

http://avtomaticheskij-poliv.kiev.ua

У нашей организации полезный веб портал со статьями про лазерная эпиляция киев.