OAK BROOK, ILLINOIS – Hub Group, Inc. (“Hub Group”; NASDAQ: HUBG), one of the nation’s leading freight transportation management companies, today entered into a definitive agreement and concurrently sold its subsidiary, Mode Transportation, LLC (“Mode”), to an affiliate of York Capital Management (“York”) for approximately $238.5 million. The transaction is a result of the previously announced exploration of strategic alternatives for Mode that was undertaken by the Hub Group Board of Directors as part of their ongoing review of alternatives for creating shareholder value. The sale does not include the Temstar business which is being retained by Hub Group and was previously included in the Mode segment for financial reporting purposes. The purchase price is subject to certain post-closing adjustments.

“Mode has an excellent management team, with a strong, solid agent base and loyal customers. While Mode has been very successful, there was a lack of strategic alignment with Hub’s centralized business model. The talented Mode team, combined with York’s expertise and significant resources, positions Mode well for realizing the next chapter of its growth,” said David Yeager, Hub Group Chairman and Chief Executive Officer.

Jim Damman, President of Mode, said, “Mode is an exceptional agent-based transportation solutions provider differentiated by customer-specific expertise, offerings across all modes of freight transportation and leading edge technology and analytics. We are excited about joining forces with York and the support they will provide as we execute our growth plan. We look forward to continuing to serve our agent, customer and carrier community.”

The sale price is equal to approximately 10x Mode’s adjusted EBITDA for the 12 months ended June 30, 2018, including certain incremental stand-alone expenses and excluding the results of the Temstar business. Cash proceeds will be used for acquisitions of businesses in both new and existing service lines. We are focused on acquiring high quality businesses that will deepen our relationships with our customers, strengthen our platform for growth and create shareholder value.

Moelis & Company LLC and Winston & Strawn LLP acted as advisor and legal counsel, respectively to Hub Group on the transaction. Kirkland & Ellis LLP served as counsel to York on the transaction.