Bye, a la Mode
As part of a business plan to centralize operations and move away from independent owner-operator networks, Hub Group sold its Mode Transportation subsidiary to an affiliate of York Capital Management, a diversified investment manager, for approximately $238.5 million, with about $20 billion under management.
Hub's primary focus is intermodal, and it has sold a 3PL that, according to a recent earnings call, is in solid financial shape. Mode had "strong double-digit growth across all services lines" in the second quarter, and was developing new technology applications to serve its 3PL business, said Donald Maltby, Hub's president and COO, during the call.
But Hub's intermodal division dwarfed Mode. In Q2 2018, the intermodal segment reported $882 million in revenue and $24.8 million in net income. Mode's corresponding figures were $314 million and $7.1 million.