DOWNERS GROVE, Ill., Sept. 12 /PRNewswire-FirstCall/ — Hub Group, Inc.
(Nasdaq: HUBG) announced today that Comtrak Logistics, Inc., its wholly owned
subsidiary, has entered into a definitive agreement to acquire the assets of
DNJ Transportation, Inc. and its affiliates.
DNJ is a privately-held intermodal trucking company whose primary focus is
international drayage for the intermodal sector. DNJ was established in 1975
and is headquartered in Cicero, Illinois. It has 116 drivers, of which 60%
are owner operators. DNJ has four terminals located in Illinois and Indiana.
DNJ’s revenue in 2006 was approximately $14 million. Hub Group estimates the
DNJ acquisition will be accretive to its annual earnings per share by
The total purchase price is approximately $12.1 million. Hub will pay
$9.6 million in cash at closing, which is expected to occur at the beginning
of October. The purchase price will be subject to adjustment based on DNJ’s
working capital at closing. In addition, the agreement provides for an
earn-out for the remainder of 2007, 2008 and 2009, which combined will not
exceed $2.5 million. The closing is subject to certain customary closing
conditions and approvals.
David P. Yeager, Hub’s CEO, commented, “We are excited about adding DNJ to
our Comtrak drayage business. DNJ’s international intermodal business will
provide us with immediate growth in this key market. The acquisition is
consistent with our strategic plan to increase the amount of drayage we
perform.” Yeager finished his comments by saying, “We are pleased that Joe
Tovo III, Vice President of DNJ, will join the Comtrak team as Manager of
International Drayage. We welcome all of the DNJ employees and customers and
look forward to serving the market with our combined resources.”
ABOUT HUB GROUP: Hub Group, Inc. is a leading asset light freight
transportation management company providing comprehensive intermodal, truck
brokerage and logistics services. The Company operates through a network of
over 30 offices throughout the United States, Canada and Mexico.
ABOUT DNJ: DNJ Transportation is a full-service intermodal trucking
company with headquarters in Cicero, Illinois. DNJ’s web address is
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that
are not historical, including statements about Hub Group’s or management’s
intentions, beliefs, expectations, representations, projections, plans or
predictions of the future, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are inherently uncertain and subject to risks. Such statements
should be viewed with caution. Actual results or experience could differ
materially from the forward-looking statements as a result of many factors.
Factors that could cause actual results to differ materially include the
factors listed from time to time in Hub Group’s SEC reports including, but not
limited to, the annual report on Form 10-K for the year ended December 31,
2006 and the reports on Form 10-Q for the periods ended March 31, 2007 and
June 30, 2007. Hub Group assumes no liability to update any such
SOURCE Hub Group, Inc. -0- 09/12/2007 /CONTACT: Amy Lisek of Hub Group, Inc., +1-630-795-2214/ /Web site: https://www.hubgroup.com http://www.godnj.com / (HUBG) CO: Hub Group, Inc.; Comtrak Logistics; DNJ Transportation ST: Illinois, Indiana IN: TRN SU: TNM RM-SM -- AQW033 -- 2870 09/12/2007 16:15 EDT http://www.prnewswire.com