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Hub Group Expands Its Final Mile Service Offering through the Acquisition of Forward Air Final Mile

Acquisition of Forward Air Final Mile (“FAFM”) enhances end-to-end solutions for Hub Group’s customers and adds significant scale and service capability in appliance delivery and installation.

Transaction Highlights

  • Increases Hub Group’s LTM Final Mile revenue from $192m to $481m
  • Drives continued diversification into non-asset based logistics services; pro forma LTM Logistics revenue now represents 44% of total Hub revenue
  • Adds new capabilities in appliance delivery and installation and increases company operated terminal footprint
  • Immediately accretive to Hub Group’s 2024 GAAP and cash EPS prior to expected cross-sell and operational synergies
  • Meaningful cross-sell and operational synergies for FAFM’s and Hub Group’s customers will drive additional accretion

OAK BROOK, Ill., Dec. 20, 2023 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ: HUBG) announced today that it has acquired Forward Air Final Mile (“FAFM”), a subsidiary of Forward Air Corporation (NASDAQ: FWRD).

FAFM provides residential final mile delivery and installation of big & bulky goods, with a focus on appliances. Through a network of independent service providers and 46 company-operated facilities, FAFM has delivery coverage throughout the continental US.

FAFM adds significant appliance delivery and installation capability to Hub Group’s Final Mile offering, enabling growth through cross-selling to Hub Group’s customer base. The acquisition—the largest non-asset transaction in Hub Group’s history—also advances Hub Group’s strategy of pursuing acquisitions that expand its comprehensive service offering.

“We are excited to welcome the FAFM team, customers and independent service providers into the Hub Group family” said Phil Yeager, Hub Group’s CEO. “This acquisition aligns with our long-term investment strategy and enables our goal of providing the premier supply chain solution. Our cultural alignment with FAFM, increased scale and complementary offerings will lead to enhanced value for our customers and long-term growth for our team.”

Cash consideration for the transaction of $262 million was funded with cash on hand. For the last twelve months ended September 30, 2023, FAFM generated revenue of $289 million. The transaction is expected to be immediately accretive to Hub Group’s 2024 GAAP and cash EPS.

In connection with the acquisition, Hub Group granted contingent compensation to the senior management team of FAFM to incentivize their retention and drive continued growth in Hub Group’s Final Mile service offering. The combined businesses will operate under the Hub Group Final Mile brand.

“The FAFM team is excited to join Hub Group,” said Scott Robider, Senior Vice President of FAFM. “FAFM and Hub Group share similar values and goals: striving to be the logistics provider of choice through reliability, integrity, and innovation. We believe Hub Group’s middle-mile and final-mile expertise, combined with our unique appliance delivery capabilities, will unlock significant value for our combined customers and through this combination we expect to accelerate our growth versus what we have each done individually in the past.”

Additional information related to this transaction can be found on Hub Group’s Investor page, accessible here:

Winston & Strawn LLP and Stephens Inc. served as lead legal counsel and financial advisor, respectively, to Hub Group on the FAFM transaction.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of Hub Group to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. Further information on the risks that may affect Hub Group’s business is included in filings it makes with the SEC from time to time, including those discussed under the “Risk Factors” section in Hub Group’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Hub Group assumes no obligation to update any such forward-looking statements.

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 $4 billion in revenue, our nearly 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

SOURCE: Hub Group, Inc.                

CONTACT: Laura Simek of Hub Group, Inc., +1-630-271-3833