C.H. Robinson to Acquire Freightquote
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EDEN PRAIRIE, Minn. (December 1, 2014) – C.H. Robinson (Nasdaq: CHRW) today announced that it has reached an agreement to acquire Freightquote.com, Inc. for $365 million in cash. The agreement is subject to certain customary closing conditions, including regulatory approval. Closing of the acquisition is expected to occur in the first quarter of 2015. C.H. Robinson will likely increase its existing revolving credit facility to finance the acquisition.
Freightquote is a privately-held freight broker providing services throughout North America. Freightquote’s calendar 2014 gross revenues are projected to be approximately $623 million, net revenues are projected to be approximately $124 million and adjusted EBITDA is projected to be approximately $34 million.
Founded in 1999 by Tim Barton, Freightquote is one of the largest internet-based freight brokers in the United States. Headquartered in Kansas City, MO with approximately 1000 employees, Freightquote provides truckload, less than truckload and intermodal services to approximately 80,000 customers.
“Freightquote is a high quality, innovative, growth company that brings a proven model serving smaller businesses. Its proprietary e-commerce technology allows shippers to easily access competitive rates and automated load acceptance and payment functionality. E-commerce is going to be a bigger part of future supply chain services and Freightquote brings us a leading solution in our industry,” said John Wiehoff, C.H. Robinson chairman and chief executive officer. “Along with their track record of success, Freightquote has an established brand, a talented management team, excellent people, and a performance-based company culture.”
Wiehoff continued, “Freightquote brings synergies to our less than truckload and truckload businesses as well as a talented technology team with expertise developing a great e-commerce store front experience. We look for quality companies and Tim has built a great model and team at Freightquote.”
“With the addition of Freightquote, we will increase our market share with small businesses and significantly expand our presence in the Kansas City market,” said Scott Satterlee, C.H. Robinson senior vice president of North America Surface Transportation. “We have built our business over decades by providing unparalleled service to all types of customers and we are honored to add this strong organization dedicated to that same strategy. Freightquote will operate as one of our flagship operations in Kansas City and we plan to continue to aggressively grow the operations there,” Satterlee said.
Tim Barton, Executive Chairman of Freightquote, will serve as a consultant to Freightquote following the closing of the acquisition.
“We spent a long time looking for the right strategic partner and are pleased to join the C.H. Robinson organization,” said Tim Barton. “The two companies complement each other and together we are well positioned for success into the future.”
Morgan Stanley & Co. LLC is serving as financial advisor to Freightquote.com, Inc.