C.H. Robinson (NASDAQ: CHRW) continues to expand its global network with its announcement of the acquisition of The Space Cargo Group (“Space Cargo”) on February 28, 2019. Space Cargo is a leading provider of international freight forwarding, customs brokerage, and other logistics services in Spain and Colombia.
C.H. Robinson purchased The Space Cargo Group for approximately €42 million (approximately $48 million USD) in cash. The acquisition is expected to be accretive in 2019 and will be financed through existing cash.
“The acquisition of Space Cargo advances our strategy of expanding our presence globally,” said Bob Biesterfeld, Chief Operating Officer and CEO-elect of C.H. Robinson. “We look forward to working with Space Cargo’s customers to offer our full suite of logistics services to enhance their supply chains. Space Cargo’s leadership, expertise and strong customer and carrier relationships, combined with C.H. Robinson’s global service offerings and network, will also create more robust capabilities for our customers and add scale to our business.”
Biesterfeld added, “We continue to look for ways to capitalize on the opportunity to grow globally, in part by acquiring leading local providers that share our commitment of best-in-class service and execution. This enables us to better support our customers of all sizes and enhance returns as we integrate these companies into our global business.”
Space Cargo is a leading provider of ocean and air freight forwarding, in addition to providing customs brokerage and other logistics services, to over 2,500 active customers. Headquartered in Madrid, Spain, Space Cargo has approximately 170 employees and has seven offices in Spain and one office in Colombia. For the fiscal year ending December 31, 2018, Space Cargo had approximately €74 million (approximately $84 million USD) in gross revenues.
“We are excited to join C.H. Robinson, the best third-party logistics provider, and build on the business we have done together for more than 10 years,” said Jordi Pellice, Chief Executive Officer of Space Cargo. “We believe this partnership will position us to better serve our customers and promote continued growth by leveraging C.H. Robinson’s worldwide network and diverse service offerings.”
C.H. Robinson’s Global Forwarding business currently serves five continents and 32 countries, with over 4,000 employees and 125 offices worldwide, and is the #1 non-vessel operator (NVO) from China to the United States. C.H. Robinson is a market leader in major global trade lanes and helps customers efficiently secure available capacity at competitive rates.
“We are pleased to welcome Space Cargo to the C.H. Robinson family,” said Mike Short, President of C.H. Robinson’s Global Forwarding division. “Space Cargo has a proven track record of success, and we will benefit from the company’s outstanding presence in Spain and Colombia. Space Cargo has a strong local reputation for world-class freight forwarding and a talented and committed group of individuals who will be right at home among our team. We will work hard to successfully integrate the valued employees, customers and suppliers of Space Cargo.”
C.H. Robinson will integrate Space Cargo into its Global Forwarding division and single global technology platform, Navisphere®.
About C.H. Robinson
At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world’s economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world’s largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 124,000 customers and 76,000 active contract carriers through our integrated network of offices and more than 15,000 employees. In addition, the company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations. Headquartered in Eden Prairie, Minnesota, C.H. Robinson (CHRW) has been publicly traded on the NASDAQ since 1997. For more information, visit http://www.chrobinson.com or view our company video.
About The Space Cargo Group
The Space Cargo Group is a leading provider of international freight forwarding in Spain and Colombia. The company also provides customs brokerage and other logistics services. The company was founded in 1982 and is based in Madrid, Spain.
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports. In addition, such forward-looking statements relate to the expected closing date of the acquisition and the anticipated benefits of the acquisition. Actual results could differ materially from those projected in these forward-looking statements as a result of (i) unforeseen difficulties in integrating the operations of The Space Cargo Group; or (ii) unanticipated negative reaction to the proposed transaction by customers or suppliers. Any forward looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date.
Source: C.H. Robinson
Robert Houghton, Vice President – Investor Relations and Treasury