Hub Group

Hub Group (NASDAQ: HUBG) is a supply chain solutions company in North America, providing transportation and logistics management solutions across numerous industries. As a publicly traded company with over $3.7 billion in revenue, Hub Group is backed by an asset-owned network of 41,500 53’ intermodal containers, 4,000 drivers, 5,500 units of trailing capacity and 29 terminals.

Hub Group, Inc.
TypePublic
NASDAQ: HUBG (Class A)
S&P 600 Component
IndustrySupply Chain
FoundedHinsdale, Illinois (1971)
FounderPhillip Yeager
Headquarters
Oak Brook, Illinois
Number of locations
33
Area served
North America
Key people
David P. Yeager, Chairman and CEO
Phillip D. Yeager, President and COO
ServicesSupply chain solutions
Logistics
Transportation
Revenue$3.7 billion (2019) [1]
$152 million (2019)[1]
$107 million (2019)[1]
Total assets$1.9 billion (2019)[1]
Total equity$1.07 billion (2019)[1]
Number of employees
2000+[2] (2019)
Websitehubgroup.com

Hub Group was founded in 1971 by Phillip Yeager.[3] The company went public in 1996 and is traded on the NASDAQ exchange.[4] David Yeager, son of Phillip Yeager, serves as Hub Group chairman and chief executive officer. The company is headquartered in Oak Brook, Illinois.[5]

History

In 1971, Phillip and Joyce Yeager founded Hub Group (then known as Hub City Terminals) in Hinsdale, Illinois. The company was started with $10,000 and was located in a windowless, one-room office above a flower shop.[6] The 43-year-old Phillip Yeager quit his job at the Pennsylvania Railroad, where he had worked for 19 years, to create Hub Group. At the time of its formation, Hub City Terminals worked as a shipper's agent, which was an intermediary that booked intermodal transportation with railroads.

In 1975, Yeager and his wife set up a series of S corporations to expand their business. Each office operated separately and had its own profit and loss center. Hub City Terminals was renamed Hub Group in 1985[7].

In 1995, Phillip Yeager’s son, David Yeager, became chief executive officer of Hub Group. He had been with the company since 1975, when he opened the company's Pittsburgh, Pennsylvania regional office. David Yeager became co-chairman of the company in 1992.[8]

In 1996, Hub Group held an initial public offering.[9] A year later, in 1997, the company became the first intermodal marketing company to top $1 billion in yearly revenue. Hub Group had 34 regional offices by 1998, when the company borrowed $100 million to begin purchasing all outstanding minority interests in the company's regional offices.[10]

The company moved from a geography-based operation with multiple regional offices to a centralized operation with a single profit and loss center headquartered in Lombard, Illinois in 2004. The reorganization effort allowed Hub Group to compete as a single network.

Mark Yeager was appointed president and chief operating officer in April 2005. Mark Yeager had joined Hub Group in 1992 and served as president of the company's field operations immediately prior to his appointment.

Hub Group acquired Memphis, Tennessee-based drayage company Comtrak Logistics for $48 million in 2006.[11] The two companies had worked together for over 20 years by the time of the acquisition. The deal included Comtrak's client lists and proprietary transportation tracking software.

Hub Group founder and Chairman Phillip Yeager died in October 2008 from complications following a heart attack.[12] Yeager was 80 years old. Company CEO David Yeager became chairman of Hub Group in November 2008.

In 2017, the company acquired Estenson Logistics, a national provider of dedicated trucking with nearly 100 operating sites for approximately $306 million.[13] As a part of the acquisition, the name was retired and now operates under the Hub Group brand.

In 2018, the company acquired CaseStack Logistics, a consolidation and warehousing provider that predominantly operates in the consumer packaged goods and retail space, for $225 million.[14] CaseStack now operates under a product of Hub Group called CaseStack Retail Supplier Solutions. The product offers inbound retailer logistics solutions for small-to-medium size shippers and delivers a complementary service to a core part of Hub Group’s customer base.

In 2020, Hub Group acquired NonstopDelivery, LLC (“NSD”), a leading last mile logistics provider, for $94.5 million.[15] Founded in 2000, NSD’s delivery network includes over 170 agent locations, which enables service to all U.S. zip codes. The acquisition of NSD adds a complementary residential Last Mile service capability to Hub Group’s solutions offerings.

Hub Group operates out of its global headquarters in Oak Brook, IL

References
  1. "US SEC 10-K Hub Group, LLC" (PDF). U.S. Securities and Exchange Commission. March 2016. Retrieved 21 April 2016.
  2. "Hub Group". Fortune. Retrieved 2019-01-25.
  3. Joseph Bonney (20 October 2008). "Hub Group founder Phillip C. Yeager dies". Gulf Shipper.
  4. Mark Zaloudek (8 October 2008). "Fortune 1,000 firm grew from a 'leap of faith'". Sarasota Herald-Tribune.
  5. "Form 10-K Hub Group, Inc". Securities and Exchange Commission. Retrieved 8 June 2014.
  6. "Let's Build Two: Hub Group Breaks Ground On Replica Headquarters Building". Informed Infrastructure. 2020-06-29. Retrieved 2021-01-04.
  7. "Jobs at". www.theladders.com. Retrieved 2021-01-04.
  8. "David P. Yeager". Hub Group. Retrieved 2021-01-04.
  9. "History of Hub Group, Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved 2021-01-04.
  10. "Hub Group - Lombard, IL - Company Review". www.truckingtruth.com. Retrieved 2021-01-04.
  11. "StackPath". www.mhlnews.com. Retrieved 2021-01-04.
  12. Tribune, Chicago. "Death Notice: PHILLIP C. YEAGER". chicagotribune.com. Retrieved 2021-01-04.
  13. Topics, Transport (2017-05-26). "Hub Group to Acquire Estenson Logistics for $306 Million". Transport Topics. Retrieved 2021-01-04.
  14. "Hub Group to acquire CaseStack". www.logisticsmgmt.com. Retrieved 2021-01-04.
  15. "Hub Group's $95M acquisition is path to being a last-mile market leader". FreightWaves. 2020-12-09. Retrieved 2021-01-04.
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