C.H. Robinson to Buy Indiana-based Logistics Provider for $225M
Eden Prairie-based C.H. Robinson on Tuesday announced that it has reached an agreement to acquire logistics provider Prime Distribution Services for $225 million in cash.
Headquartered in Plainfield, Indiana, Prime Distribution Services employs 270 and has five fulfillment and distribution centers across the U.S. The company, which now serves about 140 customers, provides distribution and fulfillment services for the retail industry.
Prime Distribution Services logged $108.7 million in revenue in 2019, according to a news release issued Tuesday. The acquisition is slated to close in the first quarter.
Last year, C.H. Robinson made two acquisitions: The Space Cargo Group, an international freight broker based in Madrid; and Dema Service S.p.A., a road transportation provider in Italy.
C.H. Robinson’s own revenue declined 7.9 percent to $15.3 billion in 2019. The company’s net income also slid 13.2 percent to $577 million. CEO Bob Biesterfield said the company had a quarter of “challenging operating results.”
“While our fourth quarter financial results demonstrate that we are not immune to large cyclical swings in the freight environment, we firmly believe that our continued investments through cycles will drive the alignment between net revenue growth and operating costs needed to drive operating margin expansion through freight cycles over the long term,” he said in a news release.
C.H. Robinson officials say the company’s 2019 acquisitions helped improve revenue, though only slightly. The acquisition of The Space Cargo Group, for instance, led to 3 percent net revenue growth in the fourth quarter, while the Dema Service acquisition improved revenue by 9 percent.