Hub Group to Expand its Temperature-Controlled Intermodal Service Offering through the Acquisition of Marten Transport Intermodal

Rhea-AI Summary

Hub Group (NASDAQ: HUBG) has announced the acquisition of Marten Transport's intermodal division for $51.8 million in cash. The strategic acquisition includes approximately 1,200 refrigerated containers and will position Hub Group as the second-largest provider of temperature-controlled intermodal solutions in North America.

Marten Intermodal, which generated $51.5 million in revenue over the trailing twelve months ended June 30, 2025, serves approximately 100 shippers in the food and beverage segments. The transaction is expected to close by the end of Q3 2025 and will be immediately accretive to Hub Group's Q4 2025 EPS and 2026 EPS.

Positive

• None.

Negative

• Requires $51.8M cash outlay for acquisition
• Integration risks with merging Marten's operations and customers

Insights

Transportation & Logistics Analyst

Hub Group's $51.8M acquisition of Marten Intermodal significantly expands its temperature-controlled business, improving competitive positioning and financial outlook.

Hub Group's strategic acquisition of Marten Transport's intermodal division represents a significant expansion in the temperature-controlled transportation segment. By adding approximately 1,200 refrigerated containers, Hub Group will more than double its temperature-controlled fleet and become the second largest provider of these specialized intermodal solutions in North America.

The $51.8 million cash transaction is particularly noteworthy for several reasons. First, Marten Intermodal generated $51.5 million in revenue over the trailing twelve months ended June 30, 2025, suggesting Hub is paying almost exactly 1x revenue – a reasonable valuation in the transportation sector for an asset-based business with specialized equipment.

This acquisition addresses multiple strategic objectives for Hub Group. The temperature-controlled segment offers premium margins compared to standard intermodal service due to specialized equipment requirements and the higher-value cargo being transported. By servicing approximately 100 food and beverage shippers, Hub Group gains access to a relatively stable customer base, as these sectors tend to be less cyclical than other industries.

The operational synergies appear substantial. Hub Group can leverage its existing intermodal network infrastructure while adding density with Marten's business. The complementary customer base provides cross-selling opportunities across Hub's broader logistics offerings. Most importantly, the transaction is expected to be immediately accretive to earnings in Q4 2025, enhancing Hub Group's long-term returns on invested capital while preserving balance sheet flexibility.

Temperature-controlled intermodal transportation represents a growing niche as shippers seek both cost savings versus over-the-road trucking and sustainable transportation solutions with lower carbon emissions – making this acquisition well-positioned for long-term market trends in perishable goods logistics.

Hub Group adds significant scale and service capabilities in temperature-controlled intermodal.

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

FAQ

How much is Hub Group (HUBG) paying for Marten Transport's intermodal division?

Hub Group is acquiring Marten Transport's intermodal division for $51.8 million in cash.

What is the revenue of Marten Intermodal being acquired by Hub Group?

Marten Intermodal generated $51.5 million in revenue over the trailing twelve months ended June 30, 2025.

How many refrigerated containers will Hub Group acquire from Marten Transport?

The acquisition includes approximately 1,200 refrigerated containers, which will more than double Hub Group's temperature-controlled container fleet.

When will Hub Group's acquisition of Marten Intermodal close?

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

How will the Marten Intermodal acquisition affect Hub Group's earnings?

The acquisition will be immediately accretive to Hub Group's fourth quarter 2025 EPS and 2026 EPS, as well as accretive to long-term returns on invested capital.

How many customers does Marten Intermodal serve?

Marten Intermodal serves approximately 100 shippers in the food and beverage segments.