Hub Group Acquires Choptank Transport, Advances in Cold-Chain Segment
Hub Group’s acquisition bolsters the company’s presence in the refrigerated transportation space and adds a complementary offering to serve its customers' multimodal transportation and logistics needs.
The acquisition enhances Hub Group’s over-the-road refrigerated transportation solutions offering.
Photo: Hub Group
Hub Group has acquired Choptank Transport, a provider of non-asset refrigerated transportation solutions with an expansive network of over 20,000 carriers throughout North America, specializing in chilled and frozen solutions.
The $130 million acquisition enhances Hub’s over-the-road refrigerated transportation solutions offering, and complements its growing fleet of 450 refrigerated intermodal containers, Hub Group officials said in a press release.
Hub Group intends to further invest in its refrigerated transportation offering by purchasing 550 refrigerated intermodal containers in 2022, bringing the size of its fleet to 1,000.
The addition of Choptank is an important strategic milestone toward achieving Hub Group’s goal of over $6 billion of revenue by 2025, company officials said.
Choptank adds scale to Hub’s brokerage service line, with combined revenue of over $1 billion across dry van, refrigerated and LTL freight expected for 2021. The acquisition is expected to result in numerous complementary cross-selling opportunities for both Hub’s and Choptank’s customer bases. With this transaction, Hub’s non-asset business lines will contribute over 40% of total revenue.
Choptank’s 400 employees will join Hub Group.
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