C.H. Robinson's Acquisition Boosts Global Footprint
The wide-moat third-party logistics behemoth struck an agreement to acquire privately held air and ocean forwarder APC Logistics.
Wide-moat third-party logistics behemoth
Further financial details were limited, but running potential APC performance numbers through our model, our initial take is that the cash flow impact should prove modestly accretive to shareholder value, and we expect to boost our $67 fair value estimate by roughly 3%; the shares are trading in fairly valued territory. In general, we have high confidence in Robinson’s best-in-class operational acumen, and previous deals in its global forwarding segment have met with success (including integration efforts), namely its 2012 acquisition of Phoenix International. We expect additional detail when the firm reports third-quarter results in late October.
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