Hub Group, Inc.

While this week’s fourth quarter earnings call, for Atlanta-based global freight transportation and logistics services provider UPS, was replete with interesting information and data, including nearly 8% revenue decline and 12,000 layoffs, another interesting takeaway was related to its truckload brokerage business, Coyote, which it acquired in 2015.

Oak Brook, Ill.-based freight transportation and logistics services provider Hub Group took steps to expand its final mile service portfolio, announcing it has acquired Forward Air Final Mile (FAFM), a subsidiary of Greenville, Tenn.-based asset-light freight and logistics services provider Forward Air.

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.