Hub Group, Inc. Announces Acquisition of Marten Intermodal Assets to Expand Temperature-Controlled Transportation Services

Hub Group acquires Marten Intermodal's assets, enhancing its temperature-controlled logistics capabilities and revenue potential.

Quiver AI Summary

Hub Group, Inc. announced its agreement to acquire the intermodal assets of Marten Transport, Ltd.'s Marten Intermodal for $51.8 million in cash, which includes about 1,200 refrigerated containers. This acquisition positions Hub Group as the second largest provider of temperature-controlled intermodal solutions in North America, expected to create operational synergies through increased scale and network density. The deal will allow Hub Group to cross-sell services to Marten Intermodal's existing customers and is projected to be accretive to both its fourth-quarter 2025 and 2026 earnings per share. The transaction is anticipated to close by the end of the third quarter, subject to customary conditions. Hub Group sees this move as a strategic alignment with its long-term investment strategy, enhancing margins and maintaining capital flexibility.

Potential Positives

• Acquisition makes Hub Group the second largest provider of temperature-controlled intermodal solutions in North America.
• Immediately accretive to Hub Group’s fourth quarter 2025 EPS and 2026 EPS, enhancing profitability.
• Operational synergies anticipated through increased scale and network density, leading to improved efficiency.
• Cross-sell opportunities with additional refrigerated customers could enhance revenue streams across business lines.

Potential Negatives

• Acquisition for $51.8M in cash could strain Hub Group's financial resources or create debt if not managed properly.
• Dependence on temperature-controlled logistics may expose Hub Group to fluctuations in demand and operational challenges in this niche market.
• Forward-looking statements highlight risks and uncertainties that could materially affect future performance, potentially creating investor concerns.

FAQ

What did Hub Group acquire from Marten Transport?

Hub Group acquired the intermodal assets of Marten Transport, including approximately 1,200 refrigerated containers.

How does this acquisition affect Hub Group's market position?

This acquisition makes Hub Group the second largest provider of temperature-controlled intermodal solutions in North America.

When is the expected closing date for the acquisition?

The transaction is expected to close by the end of the third quarter of 2025, pending customary conditions.

What are the financial benefits of this acquisition?

The acquisition is immediately accretive to Hub Group's EPS for 2025 and is expected to enhance long-term returns.

Who served as legal counsel and financial advisor for this transaction?

Winston & Strawn LLP served as lead legal counsel, while Stephens Inc. acted as financial advisor for Hub Group.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$HUBG Hedge Fund Activity

We have seen 131 institutional investors add shares of $HUBG stock to their portfolio, and 139 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• FIRST TRUST ADVISORS LP added 2,160,494 shares (+2986.8%) to their portfolio in Q1 2025, for an estimated $80,305,561
• SELECT EQUITY GROUP, L.P. removed 1,701,418 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $63,241,707
• CAPITAL INTERNATIONAL INVESTORS added 1,300,669 shares (+60.9%) to their portfolio in Q1 2025, for an estimated $48,345,866
• BALYASNY ASSET MANAGEMENT L.P. removed 609,647 shares (-53.1%) from their portfolio in Q1 2025, for an estimated $22,660,578
• FULLER & THALER ASSET MANAGEMENT, INC. added 592,443 shares (+90.3%) to their portfolio in Q1 2025, for an estimated $22,021,106
• UBS GROUP AG removed 469,696 shares (-66.1%) from their portfolio in Q1 2025, for an estimated $17,458,600
• FISHER ASSET MANAGEMENT, LLC added 387,604 shares (+28.9%) to their portfolio in Q1 2025, for an estimated $14,407,240

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$HUBG Analyst Ratings

Wall Street analysts have issued reports on $HUBG in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

• Baird issued a "Outperform" rating on 07/01/2025
• Susquehanna issued a "Positive" rating on 06/24/2025
• Benchmark issued a "Buy" rating on 05/09/2025

To track analyst ratings and price targets for $HUBG, check out Quiver Quantitative's $HUBG forecast page.

$HUBG Price Targets

Multiple analysts have issued price targets for $HUBG recently. We have seen 5 analysts offer price targets for $HUBG in the last 6 months, with a median target of $40.0.

Here are some recent targets:

• Brian Ossenbeck from JP Morgan set a target price of $36.0 on 07/08/2025
• Daniel Moore from Baird set a target price of $44.0 on 07/01/2025
• Bascome Majors from Susquehanna set a target price of $46.0 on 06/24/2025
• Brandon Oglenski from Barclays set a target price of $40.0 on 05/12/2025
• Christopher Kuhn from Benchmark set a target price of $33.13 on 05/09/2025

Full Release

Transaction Highlights

• 
  Acquisition includes approximately 1,200 refrigerated containers and makes Hub Group the second largest provider of temperature-controlled intermodal solutions in North America
  


• 
  Operational synergies through additional scale and network density
  


• 
  Cross-sell opportunities with additional refrigerated customers across business lines
  


• 
  Immediately accretive to Hub Group’s fourth quarter 2025 EPS and accretive to 2026 EPS
  


• 
  Accretive to Hub Group’s long-term returns on invested capital
  


• 
  Marten Intermodal generated $51.5M of revenue over the trailing twelve months ended June 30, 2025
  

OAK BROOK, Ill., July 22, 2025 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ: HUBG) announced today that it has entered into an agreement to acquire the intermodal assets of Marten Transport, Ltd. Intermodal (“Marten Intermodal”), a division of Marten Transport, Ltd. (NASDAQ: MRTN).

Marten Intermodal provides temperature-controlled intermodal service to a diversified group of approximately 100 shippers in the food and beverage segments. Temperature-controlled intermodal transportation provides shippers the competitive advantages of reliable service and lower cost as compared to over the road temperature-controlled transportation.

“We are excited to more than double Hub Group’s temperature-controlled container fleet and leverage our existing intermodal network to serve Marten Intermodal’s customers” said Phil Yeager, Hub Group’s President, CEO and Vice Chairman. “This opportunity aligns with our long-term investment strategy, expands margin, and preserves capital flexibility. We are committed to sustaining the strong service and growth momentum of our leading temperature-controlled intermodal offering.”

The transaction is structured as an asset purchase of certain intermodal equipment and contracts from Marten Transport Ltd. for $51.8M in cash and is expected to close by the end of the third quarter subject to certain customary closing conditions.

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

https://investors.hubgroup.com/

Winston & Strawn LLP and Stephens Inc. are serving as lead legal counsel and financial advisor, respectively, to Hub Group on the Marten Intermodal 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 approximately $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 hubgroup.com.

SOURCE: Hub Group, Inc.

CONTACT: Garrett Holland, Investor Relations, gholland@hubgroup.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.