JB Hunt to buy brokerage assets of BNSF Logistics

© Mr.phonlawat Chaicheevinlikit

PRESS RELEASE 

September 14, 2023 3:05 PM

LOWELL, Ark. and FORT WORTH, Texas, September 14, 2023 – Today, J.B. Hunt Transport Services Inc. (NASDAQ: JBHT), one of the largest supply chain solutions providers in North America, and Burlington Northern Santa Fe, LLC announced J.B. Hunt’s subsidiary, J.B. Hunt Transport, Inc., has entered into a definitive agreement to purchase the brokerage operations of BNSF Logistics, LLC.

BNSF Logistics, LLC is an affiliate of BNSF Railway Company (BNSF), providing third-party logistics (“3PL”) services for the movement of full truckload, flatbed, temp-controlled, drayage, expedited, and less-than- truckload services to a large and diverse group of customers through both an employee and agent model. BNSF Logistics also provides warehouse, retail specialty, heavy-haul and project services, which are not included in the transaction.

“As we continue to work with BNSF Railway to develop solutions that drive value for customers, we recognized a unique opportunity to combine the companies’ efforts to serve the transportation market with 3PL services and leverage the investments J.B. Hunt has made in our technology platform, J.B. Hunt 360°®,” said John Roberts, CEO of J.B. Hunt. “This acquisition is another step forward in our mission to create the most efficient transportation network in North America.”

J.B. Hunt and the company now known as BNSF Railway disrupted the transportation industry in 1989 by developing a double-stack shipping solution that would complement both rail and trucking services, a first for modern transportation. In March 2022, the two companies launched a joint effort to substantially improve capacity in the intermodal marketplace. This latest effort will build on a long-term business relationship and strategic vision to provide efficient, value-added solutions for customers across the North American supply chain.

“This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers,” said Katie Farmer, President and CEO of BNSF Railway. “This continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services.”

Following the closing of the transaction, the brokerage operations of BNSF Logistics will roll into J.B. Hunt’s Integrated Capacity Solutions (ICS) for segment reporting purposes. The transaction will be funded using J.B. Hunt’s existing cash balance and is expected to close before year-end.

“BNSF Logistics has shown strong performance in serving customers of all sizes,” said Brad Hicks, executive vice president of People and president of Highway Services at J.B. Hunt. “Complemented with our best-in-class intermodal and J.B. Hunt 360box® power-only service offering, this acquisition will provide a compelling value proposition for customers, growth opportunities for J.B. Hunt and greater service capabilities for BNSF Logistics’ employee and agent model.”

BNSF Logistics provides value-added 3PL services for BNSF Railway. Upon closing the transaction, BNSF Railway and J.B. Hunt will enter into a long-term service agreement whereby J.B. Hunt will continue to provide those services for BNSF Railway.

The full release is here.