- Hub Group Inc (NASDAQ:HUBG) has acquired TAGG Logistics, a provider of e-commerce, B2B, and omnichannel fulfillment solutions, for $103 million, funded with cash on hand.
- Hub Group also granted contingent compensation to the TAGG senior management team to incentivize their retention and drive growth.
- Founded in 2006, TAGG has over 4 million square feet of warehousing space throughout the U.S. TAGG has approximately 800 employees at its 18 facilities.
- The transaction expands Hub Group’s consolidation and fulfillment solutions offering, growing its footprint to 9 million square feet.
- Hub Chairman and CEO David Yeager said, “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.”
- TAGG expects to generate ~$200 million of annual revenue in 2022.
- Hub noted that adding TAGG is an important milestone toward achieving its goal of $5.5-$6.5 billion in revenue by 2025.
- As of June 30, 2022, HUBG held cash and equivalents of $298 million.
- Price Action: HUBG shares are trading lower by 1.30% at $84.10 on the last check Monday.
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