Downers Grove, IL, US: Exel Transport’s “temperature protected service line” was one of the attractions for US freight broker Hub Group, which has bought rival Exel for around $83m. Exel provides temperature-controlled distribution for chilled and frozen products and it also offers intermodal refrigerated services. Exel Transportation – an affiliate of Exel Inc, which is a wholly owned subsidiary of Deutsche Post DHL – had 2010 sales of $717m. Intermodal accounted for about 41% of that. The new deal gives Hub a 20% share of the US intermodal market.
ETS is now a wholly-owned subsidiary of Hub Group, operating independently under the name Mode Transportation.
“We are extremely pleased to welcome Mode’s Independent Business Owners (IBOs), employees, and customers into the Hub Group family,” says David Yeager, Hub group chairman and chief executive. “This is an important day in the history of Hub. We are bringing together two strong and successful companies with highly complementary service offerings. Mode is the strongest third-party agent network in the industry with outstanding customer relationships and a diverse portfolio of solutions, including temperature-protected services. We are looking forward to working with the Mode Transportation team to continue its growth and expansion in the years to come.”
Mode Transportation’s headquarters will remain in Dallas, Texas.
