Hub Group (Nasdaq: HUBG) announced 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,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.”
-Hub Group Chairman and CEO David Yeager.
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,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.”
-TAGG founder and CEO Tod Yazdi.
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.
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.