Hub Group to form joint venture with Mexico-based EASO, enhancing end-to-end solutions for customers and adding significant scale to its Intermodal capabilities.
Transaction Highlights
- Unique partnership adds significant scale to Hub Group’s intermodal business and drayage capabilities in Mexico; expands physical footprint via EASO’s network of terminals
- Joint venture will be the largest cross-border and intra-Mexico intermodal company, positioning Hub Group to capitalize on nearshoring trends and providing meaningful growth opportunities
- EASO has been expanding its cross-border presence and converting over-the-road freight to intermodal, resulting in over 30% YoY intermodal volume growth
- Sizable synergy opportunities associated with cross-selling, operational integration, asset utilization and drayage enhancements
- Immediately accretive upon close to Hub Group’s 2024 EPS prior to expected cross-sell and operational synergies
OAK BROOK, Ill., Oct. 08, 2024 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ: HUBG) announced today that it entered into a joint venture with EASO.
Founded in 1972 and headquartered in Mexico City, EASO is a family-led, premier intermodal and trucking logistics provider in Mexico. The Company specializes in intermodal, dedicated trucking, truckload and freight brokerage services. Through a network of terminals across Mexico, EASO serves the entire Mexican domestic market and main logistics hubs in the U.S. using its intermodal cross-border network.
EASO is the largest intermodal carrier in Mexico and will add significant scale to Hub Group's intermodal and transportation solutions business. EASO serves a diverse base of blue-chip customers across a variety of modes. With a substantial increase in cross-border trade activity from nearshoring, this partnership maximizes Hub Group’s cross-border service offering and provides increased intermodal conversion opportunities. The family will continue leading and managing the joint venture, with support from their existing management team and Hub Group.
“We are excited to welcome the EASO team and customers to the Hub Group family,” said Phil Yeager, Hub Group’s President, CEO and Vice Chairman. “The joint venture aligns with our long-term investment strategy and further enables our vision to deliver the premier supply chain solution. Our cultural alignment with EASO and the family, increased scale and expanded network in Mexico will lead to enhanced service and value for our customers.”
For the full year 2024, EASO estimates revenue of approximately $115 million. The transaction is expected to be immediately accretive upon close to Hub Group’s 2024 EPS.
Additional information related to this transaction can be found on Hub Group’s Investor page, accessible here: https://investors.hubgroup.com/
Jones Day LLP served as lead legal counsel and Raymond James & Associates, Inc. was financial advisor to Hub Group on the deal. Perez-Llorca / Gonzalez Calvillo served as legal counsel and Bluejay Advisors LLC served as M&A adviser to EASO.
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of Hub Group to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. Further information on the risks that may affect Hub Group’s business is included in filings it makes with the SEC from time to time, including those discussed under the “Risk Factors” section in Hub Group’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Hub Group assumes no obligation to update any such forward-looking statements.
ABOUT HUB GROUP: Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers’ needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers’ supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (Nasdaq: HUBG) with over $4 billion in revenue, our nearly 6,000 employees and drivers across the globe are always in pursuit of “The Way Ahead” – a commitment to service, integrity and innovation. For more information, visit hubgroup.com.
SOURCE: Hub Group, Inc.
CONTACT: Lorna Williams, Investor Relations, lornawilliams@hubgroup.com
