Deutsche Post DHL has sold US-based freight business Exel Transportation Services to Hub Group for$83 million in a strategic de-investment.
Hub Group announced the acquisition of ETS, which has been re-named to Mode Transportation.
The company consists of about 300 Independent Business Owners (IBOs) who sell and operate thebusiness throughout North America, corporate offices in Dallas and Memphis, a Company ManagedOperation in Dallas and a temperature protected services division, Temstar, located in Lombard, IL.Last year Mode Transportation had sales of about $717 million, including intermodal revenue of $294million, truck brokerage revenue of $279 million and LTL revenue of $85 million.
Hub Group itself had revenues of $1.8 billion in the year ending December 31, 2010, andimproved its net profit to $43.5 million. It focuses on intermodal transportation and describesitself as the third-largest truckload broker in the USA.
“We are extremely pleased to welcome Mode’s Independent Business Owners (IBOs), employees,and customers into the Hub Group family,” said David Yeager, Hub Group Chairman and Chief ExecutiveOfficer. “This is an important day in the history of Hub. We are bringing together two strong andsuccessful companies with highly complementary service offerings. Mode is the strongest third-partyagent network in the industry with outstanding customer relationships and a diverse portfolio ofsolutions, including temperature protected services. We are looking forward to working with theMode Transportation team to continue its growth and expansion in the years to come.”
Key leadership, including President Jim Damman, will continue in their current roles withMode Transportation and the company will remain headquartered in Dallas, Texas.
Damman stated: “We are excited to become a part of a well respected transportation companywith a history of growth and innovation. We believe access to Hub Group’s dedicated fleet andefficient drayage operations, among other benefits, will allow us to outpace the competition.”
