Hub Group Inc., a freight transportation management company, has purchased Exel Transportation Services (ETS), a third-party logistics provider, for $83 million before post closing adjustments. ETS is now a wholly-owned subsidiary of Hub Group, operating independently under the name Mode Transportation. ETS was previously an affiliate of Exel Inc., which is a wholly-owned subsidiary of Deutsche Post DHL.
Mode Transportation consists of about 300 independent business owners who sell and operate the business throughout North America, corporate offices in Dallas and Memphis, a company-managed operation in Dallas and a temperature protected services division, Temstar, located in Lombard, Ill.
Mode Transportation’s sales for the year ended December 31, 2010, were approximately $717 million. The largest components were: intermodal revenue of $294 million, truck brokerage revenue of $279 million, and less-than-truckload (LTL) revenue of $85 million.
Key leadership, including president Jim Damman, will continue in their current roles with Mode Transportation. Mode will remain headquartered in Dallas, Texas.
