Hub Group will expand its reefer intermodal offerings through the acquisition of Marten Transport’s intermodal division in Q3, the Illinois-based transportation and logistics provider announced Tuesday.
The deal for $51.8 million in cash involves taking over customer contracts along with approximately 1,200 reefer containers, which Hub Group will leverage into its existing intermodal network, according to an investor presentation.
“The acquisition more than doubles the size of the temperature-controlled fleet and makes Hub Group the second largest provider of refrigerated intermodal solutions in North America,” the presentation said.
Marten’s intermodal division serves approximately 100 shippers in the food and beverage sectors, according to the release.
Hub Group plans to use the M&A deal to establish refrigerated service in Mexico. That follows several other deals over the years to enhance various transportation services:
- Notably, in 2021, the company acquired Choptank Transport, helping bolster its reefer presence.
- Last October, the company entered a joint venture with Mexico City-based EASO to scale Hub Group’s intermodal and drayage capabilities in Mexico.
The cash infusion for Wisconsin-based Marten following a nosedive in operating income following a pandemic peak of $143 million in 2022, which fell to $90 million in 2023 and $33 million in 2024.
Marten’s intermodal segment only makes up 5% of the company’s revenue, but its revenue was recently hit harder than other segments in 2024, according to an annual report, Net of fuel surcharges, its TL segment revenue decreased 4.6%, its dedicated segment decreased 20.3%, and its intermodal segment decreased 34.8%.
