Hub Group to expand its Mexico intermodal service via EASO joint venture

Hub Group Inc. has formed a joint venture with EASO as part of a plan to expand Hub's intermodal and drayage capabilities in Mexico.

Founded in 1972 and headquartered in Mexico City, EASO is a family-led intermodal and trucking logistics provider in Mexico. Through a network of terminals across Mexico, EASO serves the Mexican domestic market and main logistics hubs in the United States via its intermodal cross-border network, Hub Group officials said in a press release.

As the largest intermodal carrier in Mexico, EASO will add "significant scale" to Hub Group's intermodal and transportation solutions business, they said.

With the growth in cross-border trade activity coming from nearshoring, the partnership with EASO will enhance Hub Group’s cross-border service and provide increased intermodal conversion opportunities, Hub Group officials said.

“The joint venture aligns with our long-term investment strategy and further enables our vision to deliver the premier supply chain solution," said Hub Group President, CEO and Vice Chairman Phil Yeager. "Our cultural alignment with EASO and the family, increased scale and expanded network in Mexico will lead to enhanced service and value for our customers.”

The family will continue leading and managing the joint venture, with support from their existing management team and Hub Group. For full-year 2024, EASO estimates $115 million in revenue. The transaction with Hub Group is expected to be accretive upon close to Hub Group’s 2024 earnings per share.

Jones Day LLP served as lead legal counsel and Raymond James & Associates Inc. was financial adviser to Hub Group. Perez-Llorca/Gonzalez Calvillo served as legal counsel and Bluejay Advisors LLC served as mergers and acquisitions adviser to EASO. Based in Oak Brook, Illinois, Hub Group offers transportation and logistics management solutions.