Hub Group To Spin Off Logistics Business

April 7, 2000 8:15 AM, EDT

Hub Group is spinning off its non-asset-based logistics business.

The Lombard, Ill.-based intermodal marketing company last week signed a letter of intent to sell its majority stake in Hub Group Distribution Services to an unidentified investment group.

Hub Group officials said the company will use proceeds from the sale to pay down debt, fund potential acquisitions and invest in the development of new electronic commerce services and system enhancements.

Vice Chairman David P. Yeager said the transaction is a “positive development” for shareholders and customers.

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