C.H. Robinson Buys APC Logistics for $225 Million to Expand in Australia
August 31 2016 - 8:50PM
Dow Jones News
Logistics provider C.H. Robinson Worldwide Inc. said Wednesday
that it would acquire APC Logistics, which provides freight
forwarding and customs brokerage services in Australia and New
Zealand, part of a global expansion effort the company says will
better serve e-commerce-related shippers.
C.H. Robinson will pay $225 million in cash for APC, the latest
in a string of acquisitions totaling more than $1 billion since
2010. The company's last acquisition was Freightquote.com Inc., an
online trucking marketplace for which it paid $365 million in early
2015.
Based in Eden Prairie, Minn., C.H. Robinson has operations in 37
countries and worked exclusively with APC for freight forwarding
between the U.S. and Australia, said John Wiehoff, C.H. Robinson's
chairman and chief executive. Australia is a growing market in
which APC has a roughly 10% market share, and acquiring the company
will enable C.H. Robinson to capture some shipments moving from
Europe and Asia to Australia as well, he added.
"We're excited about being able to go after more of that market
share," Mr. Wiehoff said. APC will be integrated into C.H.
Robinson's global forwarding division.
The logistics industry has seen a whirlwind of acquisitions in
recent years, which Mr. Wiehoff believes is a result of the
changing needs of shippers as online shopping grows. As retailers
are moving goods through their supply chains at a faster pace,
traditional processes such as faxing information between agents are
no longer sufficient, he said.
"Most large retailers that we're working with today are going
through tremendous changes around e-commerce and how their stores
and products get distributed to all their customers around the
world," he said. That has created a greater need for freight
forwarders to have their own operations globally, and linked to the
same technology platforms so providers can more efficiently
consolidate, deconsolidate and track shipments.
C.H. Robinson plans to continue to be interested acquisitions
that could further its global expansion plans, Mr. Wiehoff said,
though the company isn't looking at any other company specifically
at the moment.
The rapid pace of acquisitions has prompted concerns among
investors and analysts over the ability of logistics companies to
merge such far-flung operations. Mr. Wiehoff said this is something
C.H. Robinson also fears, but not with APC because the companies
have worked together for decades. "We've known them for a long
time. We have a good operating relationship with them," he
said.
Melbourne, Australia-based APC Logistics is a privately held
international freight forwarder that provides ocean, air and
customs brokerage to companies shipping into and out of Australia
and New Zealand. The company, which has 300 employees in nine
offices across the region, had $251 million in revenue for its
latest fiscal year, which ended June 30.
C.H. Robinson reported $3.30 billion in revenue for the latest
quarter. The company's shares closed at $69.42, down from a
12-month high of more than $75 in April.
Write to Loretta Chao at loretta.chao@wsj.com
(END) Dow Jones Newswires
August 31, 2016 20:35 ET (00:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
CH Robinson Worldwide (NASDAQ:CHRW)
Historical Stock Chart
From Mar 2024 to Apr 2024
CH Robinson Worldwide (NASDAQ:CHRW)
Historical Stock Chart
From Apr 2023 to Apr 2024