The acquisition will expand Hub Group’s warehouse footprint from about 5 million square feet to over 9 million square feet. And by introducing a complementary e-commerce offering to its platform, the move bolsters the company’s presence in the consolidation and fulfillment space.
“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.”
Founded in 2006, Allentown, Pennsylvania-based Tagg has grown into a nationwide fulfillment provider with over 4 million square feet of warehouse space. Across its 18 facilities, the company has a total of approximately 800 employees. That large footprint allows Tagg to reach 99.7% of the U.S. population within two days.
“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.”
Why Hub Group acquired Choptank?
Hub Group granted contingent compensation to Tagg’s senior management team in order to retain them within the business. With the additional employees, customers and vendors, Hub Group projects to generate $200 million in revenue in 2022.
