C.H. Robinson Closes APC Logistics Buyout, Expands Base
Zacks Investment Research | Oct 03, 2016 11:12PM ET
C.H. Robinson Worldwide Inc. (NASDAQ:CHRW) recently announced that it has completed the acquisition of APC Logistics. The acquired company is one of the top providers of freight forwarding and customer brokerage services in Australia and New Zealand. The company serves more than 3000 suppliers and customers in these regions.
C.H. Robinson will be setting up a new region to the its Global Forwarding division called Oceania which will include APC Logistics. The company shall also onboard APC Logistics to its global technology platform, Navisphere. The deal has been valued at AUD 300 million. The acquisition, related fees and expenses were funded with cash and funds drawn from the acquirer’s current revolving credit facility. C.H. Robinson believes that the transaction will be modestly accretive to its earnings.
Benefits of the Acquisition
The deal is expected to benefit both the acquirer and the acquired company. The buyout has helped C.H. Robinson to expand its global operations as well as add more capabilities and expertise to its services. The company expects to gain from APC Logistics’ commendable customer and carrier relationships in the region.
Zacks Rank and Stocks to Consider
C.H. Robinson currently carries a Zacks Ranks #3 (Hold). A better-ranked stock in the transportation services sector includesGreen Plains Partners LP (NASDAQ:GPP) which saw earning estimate improving by 2 cents over the past 60 days with a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
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