C.H. Robinson (Nasdaq: CHRW) today announced that it has finalized the acquisition of Prime Distribution Services (“Prime”), a leading provider of retail consolidation and value-added warehouse services in North America, from Roadrunner Transportation (NYSE: RRTS) for $225 million. The acquisition expands C.H. Robinson’s retail consolidation business and brings additional scale, capabilities and expertise to the company’s portfolio. C.H. Robinson financed the acquisition and related fees and expenses with cash on hand and funds drawn from C.H. Robinson’s existing credit facilities. The company expects the transaction to be slightly accretive to earnings in 2020.
“We are excited about the combination of Prime and C.H. Robinson,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. “We welcome our new colleagues at Prime to the team, and we look forward to the work we will do together to provide excellent service to our combined set of customers and carriers.”
“This is an exciting day for Prime as we bring together the capabilities and incredible talent of C.H. Robinson and Prime to create a leading retail consolidation platform,” said Bill Vechiarella, President of Prime Distribution Services. “I would like to thank all of our employees for their continued dedication to our customers and carriers.”
Prime will be integrated into C.H. Robinson’s North American Surface Transportation division.
About C.H. Robinson
C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With nearly $20 billion in freight under management and 18 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 119,000 customers and 78,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).
About Prime Distribution Services
Prime Distribution Services provides a comprehensive suite of retail consolidation solutions. With five food grade warehouse facilities strategically located across the nation and a team of retail supply chain experts, Prime is dedicated to helping its clients achieve compliance with large U.S. retailer delivery requirements while delivering transportation cost savings. For more information, please visit the Prime Distribution Services website at www.prime3pl.com.
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 whether and when the Company will be able to realize the expected financial results of the transaction and how customers, competitors and employees will react to the transaction, as well as other risks and uncertainties detailed in our Annual and Quarterly Reports. 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 – Corporate Finance