Hub Group is acquiring CaseStack for $225 million in cash.
Hub Group is acquiring CaseStack for $225 million in cash. The transaction is expected to close as early as 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,” says 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 has two lines of service and is a market leader in providing consolidation services to consumer packaged goods companies that are selling into the North American retail market. The company operates a non-asset based business model, working with transportation carriers and warehousing firms to deliver an integrated solution offering.
“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 will be paid with cash and is estimated that there wil be approximately $11 million of annual intangible amortization related to it.