C.H. Robinson to Buy Freightquote for $365 Million
C.H. Robinson Worldwide has agreed to purchase brokerage Freightquote.com for $365 million in cash to expand its market presence.
Robinson, based in Eden Prairie, Minnesota, said the acquisition likely will be paid for through an increase in its revolving credit agreement. The acquisition is expected to close in the first quarter.
The move is the latest acquisition in the brokerage industry, where companies such as XPO Logistics and Coyote Logistics also have been active buyers of other third party logistics companies.
Freightquote is expected this year to have about $623 million in gross revenue, with net revenue of about $124 million, the statement said.
From its headquarters in Kansas City, Missouri, the 15-year old company provides less-than-truckload, intermodal and truckload brokerage.
“Freightquote is a high-quality, innovative, growth company that brings a proven model serving smaller businesses,” C.H. Robinson CEO John Wiehoff said in a statement, which cited proprietary technology as a reason for the acquisition.
C.H. Robinson ranks No. 6 on Transport Topics Top 50 Logistics companies, while XPO is No. 12 and Coyote is No. 41.
