C.H. Robinson buys international freight forwarder

11/08/2012 10:11:01 AM
Andy Nelson

C.H. Robinson Worldwide Inc. has purchased an international freight forwarder with revenues of more than $807 million.

Eden Prairie, Minn.-based C.H. Robinson acquired Chicago-based Phoenix International Inc. for $571.5 million in cash and $63.5 million in new C.H. Robinson stock, according to a C.H. Robinson news release.

In the fiscal year ending June 30, Phoenix generated gross revenues of $807 million, net revenues of $161 million and adjusted operating income of $48 million.

Phoenix provides freight forwarding services to 15,000 customers worldwide, and has 2,000 employees in 76 offices in 15 countries.

“Phoenix is a high-quality growth company that brings additional expertise and scale to a key part of our long-term growth strategy,” John Wiehoff, C.H. Robinson’s chairman and chief executive officer, said in the release.

Phoenix’s chief executive officer, Stephane Rambaud, will lead C.H. Robinson’s international freight forward services. Bill McInerney, Phoenix’s founder and executive chairman, is retiring.

Comments (1) Leave a comment 

I think these type of aquistions are a great strategy. Once freight forwarders, load brokers and 3PL's have monopolized the industry rates should increase in leaps and bounds.
Some one has to physically move the freight and these leaches donot have equipment...drivers shortage,poor ROI and lack of financial commitment will soon bring shippers back to reality and understand the middle man is the winner not the asset based back bone.