The intensive period of mergers and acquisitions (M&A) activities in the logistics sector was supposed to have slowed down this year, but C.H. Robinson has bucked the trend by acquiring Canadian freight forwarder Milgram & Co., bolstering its regional freight forwarding, customs brokerage and surface transportation capabilities.
The US$50 million acquisition is the Minnesota-based 3PL’s third global forwarding acquisition in the last five years, which “strengthens our global forwarding and customs brokerage offerings in Canada,” said C.H. Robinson chairman and CEO, John Wiehoff.
Despite earlier predictions of an M&A slowdown, larger forwarding operations are taking the long view, angling for more customer interface – especially now, with the projected demand for freight forwarding rising by a compound annual growth rate (CAGR) of 4.9 percent through 2019. Then there’s e-commerce, with non-store sales growing at three times the rate of aggregate retail sales.
In addition to Milligram & Co.’s 3,500 active customers, C.H. Robinson’s global network of customers gain access to Milgram’s Canadian customs brokerage and freight forwarding capabilities, as well as its surface transportation and warehousing services. “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.
To learn more about future innovations in freight forwarding, air freight and logistics, join us at Air Cargo World’s ELEVATE Conference in Miami, Oct. 2. Click here for registration information.Like This Post