The Toronto Star--Hub Group HUBG announced Monday that it acquired Exel Transportation Services from Deutsche Post for $83 million in cash on Friday. The acquired operation comprises about 300 independent owner-operators and about 200 employees. In addition to increasing the top line, ETS expands Hub's small and midsize customer reach and adds modest refrigerated hauling capacity.

Hub plans to report the acquired business as a separate segment, Mode Transportation. Mode's 2010 gross revenue was $717 million and the business typically yields a 0.5% gross operating margin, thus the price paid is 23 times normalized EBIT.
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