US-based transportation company Hub Group has announced an agreement to acquire Marten Transport's intermodal business for $51.8 million. The transaction is expected to close in the third quarter of this year.
With this acquisition, Hub Group expects to more than double the size of its refrigerated transport fleet. Marten's intermodal division currently serves approximately 100 customers in the food and beverage sector.
"We are excited to significantly expand our temperature-controlled container fleet and leverage our existing intermodal network to serve Marten's customers," said Phil Yeager, CEO of Hub Group. "This agreement aligns with our long-term investment strategy, enhances profit margins, and maintains financial flexibility."
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Marten Transport operates approximately 1,200 refrigerated containers. Photo: Marten Transport |
Marten Transport operates approximately 1,200 refrigerated containers. Photo: Marten Transport
According to Hub Group, demand for refrigerated intermodal transport remains stable despite the cyclical downturn in the logistics industry. Compared to other modes of transport, temperature-controlled intermodal generates higher revenue and profit per trip.
Wisconsin-based Marten Transport launched its intermodal service in 2005 and currently operates about 1,200 refrigerated containers. This segment generated $51.5 million in revenue in the 12 months ending 30/6.
Following the completion of the transaction, Hub Group will take over all operations under existing rail contracts and trailer usage agreements. The company will also offer temperature-controlled intermodal services in the Mexican market for the first time, thanks to the newly acquired fleet.
Marten said the deal will allow the company to focus on developing its core businesses: long-haul refrigerated transport, dry van trucking, specialized services, freight brokerage, and operations in Mexico.
Analysts consider the deal, while small in size, to be strategically significant. Richa Harnain of Deutsche Bank commented, "This is a move that allows Hub Group to add a high-growth revenue stream from specialized refrigerated transport services to its portfolio."
Founded in 1971 and headquartered in Oak Brook, Illinois, Hub Group is one of North America's largest providers of logistics and intermodal solutions. The company is currently ranked second among the largest intermodal carriers and 14th in the Top 100 for-hire carriers in North America, according to Transport Topics. In 2024, Hub Group generated $4 billion in revenue, with 55% coming from intermodal and transportation and 45% from logistics.
Nhu Y (TTNews)
