C.H. Robinson Hauls in APC Logistics, as E-Commerce Accelerates Shipping Demands
C.H. Robinson Worldwide Inc. (Nasdaq: CHRW) has reached an agreement to acquire APC Logistics for approximately $225 million in cash, growing the buyer’s global presence. from a long-standing business relationship. The purchase stems from a long-standing business relationship with the target.
Melbourne, Australia-based APC Logistics, a privately held international freight forwarder, serves more than 3,000 clients. The target generated nearly $251 million in total revenue for the trailing 12 months ended June 30. The APC has offices in New Zealand. Tony Considine, CEO of APC Logistics, says the deal builds on the business relationship C.H. Robison and APC Logistics have had for more than 16 years.
Eden Prairie, Minnesota-based C.H. Robinson plans to integrate APC Logistics into its existing global forwarding division, alongside its Navisphere product line, after the deal closes. Navisphere tracks shipping in addition to other online logistics services. The transaction will be financed from funds by C.H. Robinson’s revolving credit facility. C.H. Robinson provides freight transportation, transportation management, brokerage and warehousing services for more than 110,000 customers and 68,000 contract carriers. The company’s global forwarding business serves four continents and 37 countries, operating from its 109 offices worldwide with nearly 3,500 employees.
Logistics and transportation companies have become attractive purchases as the growing e-commerce market has consumers demanding faster shipping times. Similar logistics deals in the space include NFI acquiring United Express; American Fast Freight Inc. purchasing Global Transportation Services Inc.; Atlas Air Worldwide Holdings Inc. (Nasdaq: AAWW) buying air cargo company Southern Air Holdings Inc.; and Transport Holdings LLC, backed by Revelstoke Capital Partners, agreeing to buy truck provider Jones Motor Group Inc.