CH Robinson pays AU$300m for APC Logistics
September 13, 2016
CH Robinson is to acquire for AU$300m APC Logistics, a provider of freight forwarding and customs brokerage services in Australia and New Zealand. Once the deal closes, CH Robinson will integrate APC Logistics into its global forwarding division and single global technology platform, Navisphere.
The two companies have had a long-standing exclusive agent relationship for business in Australia and New Zealand.
“This acquisition allows us to add great talent to our global forwarding team and advances the strategy to expand our global network,” said John Wiehoff, chief executive officer of CH Robinson. “We will work hard to successfully integrate the valued employees, customers and suppliers of APC.”
Navisphere is said to bring all aspects of a supply chain together, providing clear visibility to operations, optimisation of business processes, better technical connectivity to customers and service providers, and strategic data and reporting to help drive decisions.
The Navisphere mobile app for Apple or Android lets users track any shipment without sitting in front of a computer or calling an account rep. They can find shipment information using their preferred method of container number, customer reference, CH Robinson load or order number, pickup or drop off date, and more. Shipments can be viewed as they happen as can imaged documents linked to a shipment.
APC Logistics is a privately held international freight forwarder, providing ocean, air, customs brokerage and consultancy services, serving over 3000 customers and suppliers. Founded in 1974 and headquartered in Melbourne, Australia, it employs around 300 people and has seven offices in Australia and two in New Zealand.
APC had AU$334.2m in total revenues for the fiscal year ended June 2016. CH Robinson intends to purchase APC Logistics for AU$300m (approximately US$225m) in cash. The acquisition is expected to be accretive in 2016 and 2017 and will be financed through cash and funds drawn from CH Robinson’s existing revolving credit facility.
“By joining CH Robinson, we are building on the business we have done together for more than 16 years,” said Tony Considine, chief executive officer of APC Logistics. “We are extremely excited to have our business be part of CH Robinson, a leading global company, and believe this will position us to better serve our customers and foster growth by leveraging CH Robinson’s vast network and core service offerings.”
CH Robinson’s global forwarding business serves four continents and 37 countries, with 3500 employees and 109 offices worldwide, and claims to be the number-one non-vessel operator from China to the USA. Global forwarding clients use the firm’s freight volumes to access available capacity at competitive rates.
“APC Logistics is a high quality company with a proven track record of success,” said Mike Short, president of CH Robinson’s global forwarding division. “Combining their expertise and strong customer and carrier relationships with CH Robinson’s service offerings and network will create more robust capabilities for our customers and add scale to our business. We are excited to welcome the talented team at APC Logistics to CH Robinson.”
The agreement is subject to certain customary closing conditions, including regulatory approval.
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