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Hub Group To Acquire CaseStack, Inc.

Hub Group to acquire non-asset based logistics provider offering retailer-driven collaborative consolidation programs and freight brokerage services; adds scale and enhances solutions for our customers

Transaction Highlights

  • Entered into an agreement to acquire CaseStack for $255 million in cash
  • CaseStack is the market leader offering retailer-driven consolidation programs for consumer packaged goods companies
  • Adds LTL-focused transportation brokerage
  • Innovative, proprietary technology enables cost-saving, performance-enhancing supply chain services
  • Expands Hub Group’s integrated supply chain solutions offering
  • Expect significant network optimization opportunities
  • CaseStack’s talented senior leadership team will remain with the business
  • Non-asset based business model
  • Accretive to earnings in 2019

OAK BROOK, Ill., Nov. 05, 2018 (GLOBE NEWSWIRE) — Hub Group, Inc. (“Hub Group”; NASDAQ: HUBG), an innovative leader in freight transportation management, announced today that it has entered into an agreement to acquire CaseStack, Inc. (“CaseStack” or the “Company”) for $255 million in cash (the “Transaction”).  Hub Group expects the Transaction will close by early December 2018, subject to the satisfaction of customary closing conditions and required approvals. 

“We are delighted to welcome CaseStack’s employees, customers, carriers and service providers into the Hub Group family,” said Dave Yeager, Hub Group’s Chairman and Chief Executive Officer.  “This acquisition further advances our vision to diversify and enhance our service offering to our customers.  We are very impressed with the business that the CaseStack management team has built.  We believe there will be significant opportunities to enhance network optimization with our customers.  Similar to Hub, CaseStack brings an established high service, performance-driven culture.”

CaseStack delivers exceptional service to its customers through its approximately 280 employees and proprietary technology systems.  The Company has two lines of business.  CaseStack Logistics Services is the market leader in providing consolidation services to consumer packaged goods companies that are selling into the North American retail market.  CaseStack Transportation Services is a technology-enabled truck brokerage with a focus on LTL transportation.  The Company operates a non-asset based business model, working with transportation carriers and warehousing firms to deliver an integrated solution offering.  For the 12 month period ended September 30, 2018 the Company generated revenue of approximately $242 million and EBITDA of approximately $22 million.  The Company’s main offices are in Santa Monica, CA and Fayetteville, AR.

“The CaseStack team is excited to join Hub Group,” said Dan Sanker, CEO and founder of CaseStack.  “We believe Hub is the perfect fit for us.  Our core values, including collaboration, determination and excellence, are aligned.   The CaseStack team will continue to provide retailer consolidation programs to consumer packaged goods customers and technology enabled brokerage services.  We are thrilled that Hub will sponsor our growth by introducing new customers and enhancing our services with assets, drivers and technology.  There couldn’t be a better team to help our customers with their challenges.  This combination will provide terrific opportunities for our customers, service providers and team members.”

The Transaction consideration will be paid with cash on hand and borrowings from Hub Group’s credit facility.  We estimate there will be approximately $11 million of annual intangible amortization related to the Transaction, or approximately $0.25 per share.  Hub Group expects the Transaction to be accretive to earnings in 2019.

Winston & Strawn LLP served as legal counsel to Hub Group on the TransactionOppenheimer & Co. Inc. and Goodwin Procter LLP acted as financial advisor and legal counsel, respectively, to CaseStack on the Transaction.

Hub Group will hold a conference call at 10:00 a.m. Eastern time on November 5, 2018 to discuss the acquisition.  Hosting the conference call will be Dave Yeager, Chief Executive Officer.  Also participating on the call will be Don Maltby, Chief Operating Officer, Terri Pizzuto, Chief Financial Officer, and Geoff DeMartino, Vice President of Corporate Development

The call is being webcast and can be accessed through the Investors link on Hub Group’s web site at  The webcast is listen only.  Those interested in participating in the question and answer session should follow the telephone dial-in instructions below. 

To participate in the conference call by telephone, please dial (888) 517-2458 approximately 10 minutes prior to the call and provide Conference ID 9872380#.  The call will be limited to 60 minutes including questions and answers.

An audio replay will be available through the Investors link on Hub Group’s web site at  This replay will be available for 30 days.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about Hub Group’s, CaseStack’s or management’s earnings guidance, 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 and should be viewed with caution. Forward-looking statements may contain words such as “expects”, “expected”, “believe”, “projected”, “estimate”, or similar words, and are based on management’s experience and perception of historical trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. 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 integration of any acquisitions and expenses relating thereto, the future performance of Hub’s Intermodal, Truck Brokerage, Dedicated and Unyson Logistics business lines, the amount and timing of strategic investments by Hub Group, the failure to integrate critical information technology systems, retail customers encountering adverse economic conditions and 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, 2017.  Hub Group assumes no liability to update any such forward-looking statements.

ABOUT HUB GROUP: Hub Group is a world-class supply chain solutions provider that offers multi-modal transportation services throughout North America, including intermodal, truck brokerage, dedicated and logistics services. As a publicly traded company with over $3.5 billion in revenue, Hub Group’s organization of over 4,000 employees delivers innovative, customer-focused solutions and industry leading service to help customers better control supply chains and their costs. For more information, visit

ABOUT CASESTACK:   CaseStack is a leading non-asset based technology-enabled logistics platform for consumer package goods companies selling to omnichannel retailers.  It provides collaborative retailer-driven programs for consumer package goods companies selling to retailers including Walmart, Kroger, Amazon, Whole Foods, Target, Sam’s Club and others. The consolidation programs give suppliers a competitive advantage by reducing costs, ensuring compliance, standardizing exceptional service, increasing visibility, and introducing sustainable business practices. CaseStack’s network of warehousing and transportation service providers create a solid framework to seamlessly deliver product from manufacturing to retailer channels. In addition, CaseStack offers high-service, tech-enabled transportation brokerage services for customers.  CaseStack’s investors include Blumberg Capital, Clarity Partners and Garage Technology Ventures.

Contact: Maralee Volchko - Hub Group; 1-630-271-3745 /

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Source: Hub Group, Inc.

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