The third-party logistics provider has expanded its global forwarding footprint with the acquisition of Canadian forwarder Milgram & Company Ltd.
C.H. Robinson, a third-party logistics provider headquartered in Eden Prairie, Minn., has acquired Milgram & Company Ltd. for about $62 million CAD (U.S. $50.1 million, based on today’s exchange rate) in cash, the company said in a statement Thursday.
Montreal, Quebec-based Milgram is a provider of freight forwarding, customs brokerage and surface transportation in Canada, with approximately 3,500 active customers. The privately-held company has about 330 employees, six offices in Canada and one office in the United States.
Milgram’s staff, management, carriers and processes will remain mostly unchanged, Milgram President and CEO Jay Goldman said in a letter to customers. He said that, “while many things will remain the same, there will of course be some changes too, and to this end, our team will be in contact in the coming weeks to talk about the opportunities this presents and how our customers will benefit.”
For Milgram’s fiscal year that ended May 31, 2017, Milgram had about $155 million CAD in gross revenues.
Milgram will be integrated into C.H. Robinson’s Global Forwarding division and single global technology platform, Navisphere, C.H. Robinson said.
C.H. Robinson’s Global Forwarding division serves 31 countries across five continents, with over 4,000 employees and 125 offices worldwide.
The primary services provided by the Global Forwarding division include ocean freight, airfreight and customs brokerage services.
C.H. Robinson finalized its $300 million AUD (U.S. $238.6, based on today’s exchange rate) acquisition of Melbourne, Australia-based APC Logistics at the close of business on Sept. 30, 3016, adding Oceania as a new region to its Global Forwarding division.
C.H. Robinson’s Global Forwarding division delivered solid results during the second quarter of 2017, with income from operations rising 23.6 percent year-over-year to $27.7 million and total revenues skyrocketing 48.2 percent to $528.8 million. C.H. Robinson said APC accounted for about half of the division’s net revenue growth during the quarter, with net revenues growing 24.5 percent year-over-year to $121 million.
Despite C.H. Robinson’s Global Forwarding division holding strong during the quarter, the overall picture at the company was not so rosy, with net income tumbling 22.4 percent from the second quarter of 2016 to $111.1 million, as it faced headwinds from a sluggish truckload segment. During the quarter, truckload net revenues, the company’s primary segment for transportation revenues, fell 14.3 percent year-over-year.
C.H. Robinson said the Milgram acquisition “is expected to be approximately neutral to earnings in 2017 and slightly accretive in 2018 and will be financed through cash and funds drawn from C.H. Robinson’s existing revolving credit facility.”
C.H. Robinson snags Canadian forwarder in $50m deal
