Hub Group, Inc. Announces a Definitive Agreement to Acquire Assets of Interdom Partners
DOWNERS GROVE, Ill., June 6 -- Hub Group (NASDAQ:HUBG) announced today that it has entered into a definitive agreement to acquire the assets of Interdom Partners. Hub will hold a conference call at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on June 7 to discuss the transaction.
Interdom is a privately held non-asset based Intermodal Marketing Company that specializes in providing 20' and 40' container services to international and domestic customers. Interdom was established in 1987, has approximately 50 employees and is headquartered in Palos Heights, Illinois. Interdom owns and operates two non-asset based drayage companies in Chicago and Los Angeles with a total of approximately 40 owner operators. These drayage companies provide services for Interdom and other intermodal customers. The businesses being acquired generated approximately $90 million in revenue in 2006.
Hub will pay approximately $26 million in cash at closing, which is expected to occur at the end of June. The purchase price will be subject to adjustment based on Interdom's retained earnings and working capital at closing. In addition, the agreement provides for an earn-out for 2007 and 2008, consisting of two cash payments which combined will not exceed $5 million. The closing is subject to certain customary closing conditions and approvals.
David Yeager, Hub's CEO, commented, "We are very excited about this strategic acquisition. We have known Interdom for over 20 years as both a vendor and formidable competitor. Under the leadership of its founder and president, Rick Rudie, Interdom has developed a market-leading position in the international container segment. Interdom is a leading provider of third party international services and the acquisition will provide Hub with an entry into this growing market. Interdom also operates a sizable domestic reload business. We plan to combine our domestic reload business with Interdom's to create what we believe will be the largest player in this market. This combined entity will operate under the Interdom name and will be managed by Mr. Rudie. Finally, Interdom's two drayage operations, serving primarily international customers, represent a good fit with our existing Comtrak operations." Mr. Yeager closed by saying, "We welcome the Interdom employees and customers and look forward to serving the market with our combined resources."
ABOUT HUB GROUP: Hub Group, Inc. is a leading asset light freight transportation management company providing comprehensive intermodal, truck brokerage and logistics services. The Company operates through a network of over 30 offices throughout the United States, Canada and Mexico.
ABOUT INTERDOM PARTNERS: Interdom Partners is an Intermodal Marketing Company that specializes in providing rail services to the international and domestic shipping community. Interdom's headquarters are in Palos Heights, Illinois. Interdom's web address is www.interdompartners.com/.
Source: Hub Group, Inc.
CONTACT:
Amy Lisek of Hub Group, Inc.,
+1-630-795-2214
Web site: www.hubgroup.com/
http://www.interdompartners.com/
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