Trucking Giant Acquires Choptank Transport in $130 MILLION Deal
Oak Brook, IL – Trucking giant Hub Group announced last week the acquisition of Choptank Transport, a third-party logistics (3PL) provider specializing in truckload, refrigerated, frozen, dry van, flatbed, LTL and intermodal (rail) freight solutions for a reported $130 million.
On October 19, the companies released information regarding the acquisition, which is expected to enhance Hub’s over-the-road (OTR) refrigerated transportation solutions offering and adds to its growing fleet of 450 refrigerated intermodal containers.
Additionally, Hub Group intends to further invest in its refrigerated transportation offering by purchasing 550 refrigerated intermodal containers in 2022, bringing the size of its fleet to 1,000.
Cash consideration for the transaction of $130 million was funded by cash on hand, according to Hub.
“We are excited to welcome Choptank’s employees, customers and carriers to Hub Group,” said Hub Group Chairman and CEO David Yeager. “This acquisition delivers on our strategy to provide the industry’s premier supply chain solutions, and will advance our position in the growing cold-chain segment.”
“Our team is excited to join Hub Group,” said Choptank CEO Geoff Turner of the company’s 400 employees who will be joining Hub as a part of the acquisition.
Hub Group called the acquisition of Choptank an “important strategic milestone.”
Choptank expects to generate over $450 million of annual revenue in 2021 alone, the companies stated.
Specifically, Choptank adds scale to Hub’s brokerage service line, with combined revenue of over $1 billion across dry van, refrigerated and LTL freight expected for 2021, according to Hub.
Through the Choptank acquisition, Hub’s non-asset business lines will contribute over 40% of the company’s total revenue.