Hub Group (NASDAQ: HUBG) is a transportation management company in North America, providing intermodal, truck brokerage and logistics services. As a publicly-traded company with over $3.5 billion in revenue, the company owns two subsidiaries: Mode Transportation (formerly Exel Transportation Services), a third party logistics company (Unyson); and Hub Group Trucking, which provides intermodal freight transport and drayage services. Hub Group was founded in 1971 by Phillip Yeager. The company went public in 1996 and is traded on the NASDAQ exchange. David Yeager, son of Phillip Yeager, serves as Hub Group Chairman and Chief Executive Officer. The company is headquartered in Oak Brook, Illinois.
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History
In 1971, Phillip and Joyce founded Hub Group (then known as Hub City Terminals) in Hinsdale, Illinois. The company was started with $10,000 and was located in a windowless, one-room office above a flower shop. The 43-year-old Phillip Yeager quit his job at the Pennsylvania Railroad, where he had worked for 19 years, to create Hub Group. At the time of its formation, Hub City Terminals worked as a shipper's agent, which was an intermediary that booked intermodal transportation with railroads.
In 1975, Yeager and his wife set up a series of S corporations to expand their business. Each office operated separately and had its own profit and loss center.
Hub City Terminals was renamed Hub Group in 1985.
In 1995, David Yeager became Chief Executive Officer of Hub Group. He had been with the company since 1975, when he opened the company's Pittsburgh, Pennsylvania regional office. David Yeager had become Co-Chairman of the company in 1992.
In 1996, Hub Group held an initial public offering. A year later, in 1997, the company became the first intermodal marketing company to top $1 billion in yearly revenue. Hub Group had 34 regional offices by 1998, when the company borrowed $100 million to begin purchasing all outstanding minority interests in the company's regional offices.
The company moved from a geography-based operation with multiple regional offices to a centralized operation with a single profit and loss center headquartered in Lombard, Illinois in 2004. The reorganization effort allowed Hub Group to compete as a single network.
Mark Yeager was appointed president and Chief Operating Officer in April 2005. Yeager had joined Hub Group in 1992 and served as president of the company's field operations immediately prior to his appointment. Yeager succeeded Thomas Hardin, who had served as Hub Group president since 1985.
Hub Group acquired Memphis, Tennessee-based drayage company Comtrak Logistics for $48 million in 2006. The two companies had worked together for over 20 years by the time of the acquisition. The deal included Comtrak's client lists and proprietary transportation tracking software. Comtrak founder and Chief Executive Officer Mike Bruns was retained as head of Hub Group's Comtrak Logistics subsidiary, now named Hub Group Trucking.
Hub Group founder and Chairman Phillip Yeager died in October 2008 from complications following a heart attack. Yeager was 80 years old. Company CEO David Yeager became Chairman of Hub Group in November 2008.
In 2011, the company acquired Exel Transportation Services, a third-party logistics provider, for $83 million. Hub Group renamed the subsidiary Mode Transportation. Exel Transportation President James Damman was retained by Hub Group to lead Mode Transportation and the subsidiary remained located in Dallas, Texas.
Hub Group moved its headquarters from Downers Grove to Oak Brook in January 2013. At that time, the four-story, 140,000 square-foot building was the first new office building built in Oak Brook in over a decade. The new corporate headquarters is LEED Gold certified.
On August 8, 2015, Mark Yeager resigned as President and Chief Operating Officer. In September 2015, Hub Group appointed Donald Maltby as Yeager's successor. Maltby previously served as Chief Supply Chain Officer from January 2011 until May 2014.
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Operations
Hub Group is organized into two segments: Mode Transportation and Hub. Both segments offer intermodal, logistics and truck brokerage services. The company's logistics business operates under the Unyson name.
As of December 2015, Hub Group Trucking performed services for 75 percent of Hub Group's drayage needs.
See also
- Largest domestic 53 foot container companies (fleet size)
References
Source of article : Wikipedia
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