C.H. Robinson Worldwide has agreed to purchase freight-forwarding rival Phoenix International Inc. for $635 million in cash and stock options. C.H. Robinson expects the deal, which is slated to close in the fourth quarter of 2012, will modestly add to earnings per share in the first year, while boosting C.H.’s international freight forwarding activities.
“We see significant long-term opportunity in international forwarding as global trade expands, scale and technology continue to become more important, and shippers increasingly look to transportation providers to provide global services,” C.H. Robinson CEO John Wiehoff said in a statement.
“Together, Robinson and Phoenix will be in a strong competitive position to capitalize on those growth opportunities and continue expanding our market share,” he added.
Phoenix, a Chicago-based freight forwarder and Customs broker, recorded net revenue of approximately $161 million in the fiscal year that ended June 30. South Korean logistics company CJ Korea Express reportedly expressed interest in purchasing the 2,000-person-strong company earlier this year.
Bill McInerney, executive chairman and founder of Phoenix, said the company took great pains to ensure that it was procured by an organization that shared its service and performance values. “Joining with C.H. Robinson enables Phoenix to offer its customers a broader menu of services, leverage combined volumes more efficiently, and provide employees with even greater career path opportunities,” McInerney said in a statement.
Phoenix isn’t the only acquisition on C.H Robinson’s plate. Earlier this month, the global freight forwarder procured Poland’s Apreo Logistics S.A. for an undisclosed sum.