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PRESS RELEASE

Hub Group expands its fulfillment solutions offering through the acquisition of TAGG Logistics

Hub Group expands its fulfillment solutions offering through the acquisition of e-commerce, B2B and omnichannel logistics services provider, TAGG Logistics

Transaction Highlights:

– Expands Hub Group’s consolidation and fulfillment solutions offering, growing footprint to 9 million square feet

– Drives continued diversification into non-asset based logistics and brokerage, which now represents over 40% of total revenue

– Significant cross-selling synergies for both TAGG’s and Hub’s customers

– TAGG’s experienced management team will remain with the business

OAK BROOK, Ill., Aug. 22, 2022 (GLOBE NEWSWIRE) — Hub Group (Nasdaq: HUBG) announced today that it acquired TAGG Logistics (“TAGG”), an industry-leading provider of e-commerce, B2B and omnichannel fulfillment solutions, including warehousing and transportation services. Since its founding in 2006, TAGG has grown into a nationwide provider with over 4 million square feet of warehousing space throughout the US allowing for best-in-class, responsive e-commerce and B2B fulfillment capabilities.

The acquisition bolsters Hub Group’s presence in the consolidation and fulfillment space and adds a complementary e-commerce offering to serve its customers’ multimodal transportation and logistics needs. The addition of TAGG is an important strategic milestone toward achieving Hub Group’s goal of $5.5-$6.5 billion of revenue by 2025.

“We are excited to welcome TAGG’s employees, customers and vendors to Hub Group,” said Hub Group Chairman and CEO David Yeager. “This acquisition advances our strategy to provide the industry’s premier supply chain solutions and expands our position in the long term, high growth e-commerce fulfillment sector.”

The acquisition adds scale to Hub’s logistics service line and is expected to result in numerous complementary cross-selling opportunities for both Hub’s and TAGG’s customer bases.

“Our team is excited to join Hub Group,” said TAGG founder and CEO Tod Yazdi. “We share similar values of service, integrity and innovation. We believe Hub Group’s capabilities and reputation for excellence, combined with our nationwide facility footprint and delivery capabilities, will unlock significant value for our customers.”

Cash consideration for the transaction of $103 million was funded with cash on hand. In connection with the acquisition Hub Group granted contingent compensation to the TAGG senior management team to incentivize their retention and drive continued growth of the business. TAGG expects to generate approximately $200 million of annual revenue in 2022. TAGG has approximately 800 employees at its 18 facilities.

Update on Return of Capital activities

On August 8, 2022 Hub Group completed a privately negotiated, approximately $35 million repurchase of Class A and Class B common stock at the Class A common stock closing price of $80.83 per share. In connection with this repurchase the Hub Group Board of Directors approved an increase to the Company’s repurchase authorization so that $75 million remained under the program. Since that time the Company has purchased an additional $15 million of Class A common stock through open market transactions, bringing our total repurchase to approximately $50 million this quarter, and intends to continue to execute on its repurchase program.

Winston & Strawn LLP and Stephens Inc. served as lead legal counsel and financial advisor, respectively, to Hub Group on the TAGG transaction.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance (…).

About Hub Group: Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers’ needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers’ supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (Nasdaq: HUBG) with over $5 billion in revenue, our 6,000 employees and drivers across the globe are always in pursuit of “The Way Ahead” – a commitment to service, integrity and innovation. For more information, visit hubgroup.com.

Source: Hub Group, Inc.

Contact:
Maralee Volchko
630-271-3745

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