Hub Group, Inc. acquires non-asset based Last Mile logistics provider NonstopDelivery, LLC (“NSD”); enhances end-to-end solutions for its customers in one of the fastest growing sectors of the transportation market.
- NSD is a market leading provider of last mile solutions for many large retailers
- Expands Hub Group’s solutions offering with a complementary, value-added residential Last Mile service capability
- Provides unsurpassed levels of service and an exceptional home delivery customer experience
- NSD’s talented senior leadership team will remain with the business
- NSD provides its service on a nationwide basis through a non-asset business model
- Anticipated to be accretive to Hub Group’s earnings in 2021
OAK BROOK, Ill., Dec. 09, 2020 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ: HUBG) announced today that it has acquired NonstopDelivery, LLC (“NSD”), a leading last mile logistics provider. 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.
“This acquisition delivers on our strategy to expand our offerings to provide an end-to-end solution for our customers’ supply chains. We expect there will be significant opportunities to offer NSD’s high service last mile delivery solutions to Hub’s customer base,” said Dave Yeager, Hub Group’s Chairman and CEO. “We are excited to welcome NSD’s employees, customers and agents into the Hub Group family.”
NSD provides basic, threshold and white glove last mile delivery services including warehousing and distribution, product assembly and reverse logistics to many of the largest retailers and manufacturers in the U.S. NSD operates a non-asset business model, working with a network of agents throughout the country. With NSD’s logistics technology, customers receive real-time visibility to shipments, have access to advanced analytic tools and seamlessly integrate with other platforms. NSD also prides itself in providing the highest levels of service to customers and consumers with a centralized Customer Care call center and dedicated Account Management teams. NSD's main offices are in Chantilly, VA.
“The NSD team is thrilled to join Hub Group,” said Steve Senkus, CEO and founder of NSD. “Hub Group and NSD have been working together for over 10 years managing our customers’ middle mile logistics needs. We share a culture of service, integrity and innovation, providing a strong foundation for our two companies to come together to create additional value for our customers.”
Winston & Strawn LLP served as lead legal counsel to Hub Group on the transaction. Stifel and Scudder Law Firm, P.C., L.L.O. acted as financial advisor and legal counsel, respectively, to NSD on the transaction.
Hub Group will hold a conference call at 10:00am Eastern time on December 9, 2020 to discuss the transaction. Hosting the conference call will be Dave Yeager, Chairman and Chief Executive Officer. Also participating on the call will be Phil Yeager, President and Chief Operating Officer, and Geoff DeMartino, Chief Financial Officer.
The call is being webcast and can be accessed through the Investors link on Hub Group’s web site at www.hubgroup.com. The webcast is listen only. Those interested in participating in the question and answer session should follow the telephone dial-in instructions below.
To participate in the conference call by telephone, please dial 888-771-4371 approximately 10 minutes prior to the call and provide Conference ID 50036717. The call will be limited to 60 minutes including questions and answers.
An audio replay will be available through the Investors link on Hub Group’s web site at www.hubgroup.com. This replay will be available for 30 days.
FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about Hub Group’s, NSD’s or management’s earnings guidance, intentions, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and subject to risks and should be viewed with caution. Forward-looking statements may contain words such as “expects”, “expected”, “believe”, “projected”, “estimate”, or similar words, and are based on management’s experience and perception of historical trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. Such statements should be viewed with caution. Actual results or experience could differ materially from the forward-looking statements as a result of many factors. Factors that could cause actual results to differ materially include the integration of any acquisitions and expenses relating thereto, the future performance of Hub Group’s business lines, the amount and timing of strategic investments by Hub Group, the failure to integrate critical information technology systems, retail customers encountering adverse economic conditions, the impacts of the COVID-19 pandemic and the factors listed from time to time in Hub Group’s SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 2019 and quarterly reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020. Hub Group assumes no liability 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 $3.7 billion in revenue, our 5,000 employees across the globe are always in pursuit of "The Way Ahead" - a commitment to service, integrity and innovation. For more information, visit https://www.hubgroup.com.
ABOUT NONSTOPDELIVERY: NSD’s mission is to be the very best transportation logistics provider in the U.S. and the recognized leader in home delivery solutions. NSD is committed to providing superior customer service, operational excellence, and value-added solutions. We do this by continually investing in our team members, our delivery partners and our technology. Our almost 20 years of experience and expertise is built on our dedication to delivering an exceptional home delivery experience.
Contact: Hub Group Inc., Maralee Volchko 630.271.3745
Source: Hub Group, Inc.