Hub Group expands with acquisition of TAGG Logistics

Hub Group expands its fulfillment solutions offering through the acquisition of e-commerce, B2B and omnichannel logistics services provider, TAGG Logistics

Hub Group announced today that it acquired TAGG Logistics (“TAGG”), an industry-leading provider of e-commerce, B2B and omnichannel fulfillment solutions, including warehousing and transportation services. Since its founding in 2006, TAGG has grown into a nationwide provider with over 4 million square feet of warehousing space throughout the US allowing for best-in-class, responsive e-commerce and B2B fulfillment capabilities.

The acquisition bolsters Hub Group’s presence in the consolidation and fulfillment space and adds a complementary e-commerce offering to serve its customers' multimodal transportation and logistics needs. The addition of TAGG is an important strategic milestone toward achieving Hub Group’s goal of $5.5-$6.5 billion of revenue by 2025.

“We are excited to welcome TAGG’s employees, customers and vendors to Hub Group,” said Hub Group Chairman and CEO David Yeager. “This acquisition advances our strategy to provide the industry’s premier supply chain solutions and expands our position in the long term, high growth e-commerce fulfillment sector.”

The acquisition adds scale to Hub’s logistics service line and is expected to result in numerous complementary cross-selling opportunities for both Hub’s and TAGG’s customer bases.

“Our team is excited to join Hub Group,” said TAGG founder and CEO Tod Yazdi. “We share similar values of service, integrity and innovation. We believe Hub Group’s capabilities and reputation for excellence, combined with our nationwide facility footprint and delivery capabilities, will unlock significant value for our customers.”

Cash consideration for the transaction of $103 million was funded with cash on hand. In connection with the acquisition Hub Group granted contingent compensation to the TAGG senior management team to incentivize their retention and drive continued growth of the business. TAGG expects to generate approximately $200 million of annual revenue in 2022. TAGG has approximately 800 employees at its 18 facilities.