Comtrak Logistics, a subsidiary of the third party logistics company Hub Group, is buying DNJ Transportation for $12.1 million.
Founded in 1975, Cicero, IL-based DNJ is a privately held intermodal trucking carrier - primarily focused on international drayage for the intermodal sector - that employs 116 drivers, 60% of whom are owner-operators. Hub said DNJ’s revenue in 2006 reached some $14 million and should add 3 cents a share to Hub’s earnings.
David Yeager, Hub’s CEO, said his company will pay $9.6 million in cash at closing (expected to occur at the beginning of October) with the $12.1 million purchase price subject to adjustment based on DNJ’s working capital at closing. In addition, the agreement provides for an earn-out for the remainder of 2007, 2008 and 2009, which combined will not exceed $2.5 million, he said.
“We are excited about adding DNJ to our Comtrak drayage business,” Yeager added. “DNJ's international intermodal business will provide us with immediate growth in this key market and [will help] our strategic plan to increase the amount of drayage we perform.”