CH Robinson buys Milgram
Eden Prairie, Minn.-based C.H. Robinson has acquired Montreal-based Milgram & Co. for about $50 million. The deal enhances the U.S. firm’s customs brokerage and freight forwarding options in Canada, company officials said.
Milgram also provides surface transportation and warehousing services to 3,500 customers through six Canadian offices and one U.S. office. For the fiscal year ending May 31, Milgram generated $124 million (U.S.) in top-line revenue.
“This acquisition continues our global expansion and marks our third Global Forwarding acquisition in the past five years. We are extremely proud of the progress we have made in bringing these companies into C.H. Robinson, and Milgram provides another unique opportunity to strengthen our global forwarding and customs brokerage offerings in Canada,’’ said John Wiehoff, C.H. Robinson’s chief executive.
The acquisition will be neutral to earnings this year but slightly increase profits in 2018, the company said. C.H. Robinson announced that the transaction will be financed through cash and funds drawn from its line of credit.
“We are excited to build on our success providing supply chain expertise and execution, refining processes and being an integral part of our customers’ businesses,’’ said Jay Goldman, Milgram’s chief executive. C.H. Robinson will integrate Milgram into its Global Forwarding division, which operates in five continents and 31 countries through 125 offices worldwide.
“This acquisition strengthens our ability to continue to serve the world’s shippers and help them meet their global supply chain goals,’’ said Mike Short, president of C.H. Robinson’s Global Forwarding division. “Milgram has built a successful business doing things the right way, serving customers and exceeding their expectations. We look forward to bringing their talented team to C.H. Robinson.’’
The purchase of Milgram follows on the heels of a similar international acquisition a year ago, when C.H. Robinson announced it had agreed to purchase freight forwarder and customs brokerage APC Logistics for about $225 million. The deal was intended to enhance C.H. Robinson’s presence in Australia and New Zealand, officials said.
The two companies have maintained an exclusive agent relationship for business in those two countries. The all-cash purchase was subject to regulatory approval, the U.S. company said.
The acquisition of APC was a move by Robinson to expand its global presence. APC generated about $251 million in revenue for the 12 months ending June 30. APC has a total of nine offices and 300 employees, working from the headquarters in Melbourne, Australia.
When the deal was announced, John Wiehoff, chief executive of C.H. Robinson, said: “This acquisition allows us to add great talent to our Global Forwarding team and advances the strategy to expand our global network. We will work hard to successfully integrate the valued employees, customers and suppliers of APC.’’
APC does both ocean and air forwarding. The buyer’s Global Forwarding business has grown to serve 37 countries from 109 offices.