Hub Group, Inc.

Established in 2006, TAGG Logistics has more than 4 million square-feet (SF) of warehousing space throughout the U.S., which Hub officials said allow for best-in-class and responsive e-commerce and B2B fulfillment capabilities. TAGG is on track to generate approximately $200 million of annual revenue in 2022. The company has approximately 800 employees at its 18 facilities.

Hub Group officials said that the purchase price was $130 million and was funded by cash on hand, adding that Hub Group has granted contingent compensation to Choptank’s owners and senior management “to incentivize their retention and drive continued growth of the business.” And they added that, for 2021, Choptank is expected to generate more than $450 million in revenue.

Insider Q&A with Chris Hoffmeister, Hub Group’s Executive Vice President of Account Management. He discusses shippers’ challenges in today’s transportation environment, the value of becoming a “shipper of choice,” and what happens when companies are in sync with their logistics providers.

Hub said that the primary driver for this building, which is set to open in September 2020, is to accommodate increasing staffing levels while it scales up to meet the growing needs of its customers.

Earlier today, freight transportation services provider Hub Group announced it plans to acquire CaseStack for $225 million in cash. Established in 1999, Santa Monica, Calif.-based CaseStack has two primary business units. One unit, CaseStack Logistics Services, provides consolidation services for consumer packaged goods (CPG) companies that sell into the North American retail market. And its other unit, CaseStack Technology Services functions as a technology-enabled truck brokerage serving the LTL (less-than-truckload) market.