C.H. Robinson Announces Agreement to Sell its European Surface Transportation Business to sennder Technologies GmbH

Rhea-AI Summary

C.H. Robinson (CHRW) has announced the sale of its European Surface Transportation (EST) business to sennder Technologies GmbH, a leading digital road freight forwarder in Europe. This strategic move aligns with C.H. Robinson's enterprise strategy to focus on its four core modes: North American truckload, less-than-truckload, global ocean, and air. The company remains committed to its global forwarding and managed services presence in Europe.

The transaction is expected to close in Q4 2024, subject to customary conditions and regulatory approvals. This acquisition will enhance sennder's growth opportunities and improve service offerings and digital capabilities. C.H. Robinson will continue to invest in key trade lanes, products, and technology within the European region through its Global Forwarding and TMC teams.

Positive

• Strategic focus on core business modes expected to drive profitable growth
• Continued investment in European Global Forwarding and TMC teams
• Potential for improved operational efficiency and resource allocation

Negative

• Divestment of a long-held subsidiary (EST) since 1994
• Potential loss of market share in European surface transportation

Insights

Financial Analyst

C.H. Robinson's decision to sell its European Surface Transportation (EST) business to sennder Technologies GmbH marks a significant strategic shift for the global logistics leader. This move aligns with the company's "fit, fast and focused" strategy, aiming to streamline operations and concentrate on its core business segments.

Key financial implications include:

• Potential for improved profitability: By divesting a non-core asset, C.H. Robinson can reallocate resources to its four primary modes: North American truckload, less-than-truckload, global ocean and air freight. This focus could lead to enhanced operational efficiency and potentially higher margins.
• Short-term impact on revenue: The sale will likely result in a temporary decrease in total revenue, as the EST business contributed to the company's top line. However, this may be offset by improved profitability in core segments over time.
• Balance sheet effects: While the terms of the deal were not disclosed, the transaction could potentially strengthen C.H. Robinson's balance sheet, providing additional capital for reinvestment or shareholder returns.

Investors should monitor the company's performance post-divestiture to assess the effectiveness of this strategic realignment. The transaction's closing, expected in Q4 2024, provides ample time for the market to digest this information and for C.H. Robinson to prepare for the transition.

Logistics Industry Expert

The sale of C.H. Robinson's European Surface Transportation (EST) business to sennder Technologies represents a significant reshaping of the European logistics landscape. This move has several industry-wide implications:

• Consolidation in the European market: sennder's acquisition of EST will create a more formidable player in the European road freight sector, potentially leading to increased competition and efficiency in the market.
• Digital transformation acceleration: sennder, known for its digital freight forwarding platform, will likely integrate its technology with EST's operations. This could spur faster digitalization across the European logistics industry, pushing competitors to enhance their technological capabilities.
• Shift in competitive dynamics: C.H. Robinson's exit from European surface transportation allows the company to focus on its global forwarding and managed services in the region. This specialization could intensify competition in these specific segments.

The transaction also highlights the growing importance of digital-first logistics providers like sennder in the industry. Traditional players may need to reassess their strategies to compete effectively in this evolving landscape. For shippers and carriers, this consolidation could lead to improved service offerings and potentially more competitive pricing in the European market.

Driving Strategic Focus on its Core Business

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)-- Global logistics leader, C.H. Robinson Worldwide, Inc. (“C.H. Robinson” or the “Company”) (Nasdaq: CHRW) announced today that it has made the strategic decision to sell its European Surface Transportation business (EST) to sennder Technologies GmbH, the leading digital road freight forwarder in Europe (“sennder”). This move is part of the Company's enterprise strategy to get fit, fast and focused and to drive focus on profitable growth in its four core modes – North American truckload and less-than-truckload and global ocean and air – as the engines to create the most value for its stakeholders.

“To win, we need to focus on what sets us apart and build upon our competitive advantages,” said C.H. Robinson President and CEO Dave Bozeman. “Europe remains an important strategic market for us, and we are committed to our global forwarding and managed services presence there. This clarity of investment in the region is important for the long-term success of our business and employees as well as the value and impact we can offer our customers and carriers. I am convinced that sennder will be a great home for the EST business and will provide good continuity of service to EST customers.”

As an employer of choice in Europe and a global, industry-leading logistics provider, C.H. Robinson remains focused on delivering customer value through exceptional service and innovative solutions from its European Global Forwarding and TMC teams. The Company will continue to invest in key trade lanes, products, and technology within the region.

Through this transaction, the EST operations of C.H. Robinson will become part of sennder, unlocking significant growth opportunities for both companies and delivering improved service offerings and digital capabilities.

David Nothacker, CEO of sennder, said, “This acquisition will be pivotal in advancing sennder’s roadmap. With its vision to accelerate global trade to deliver products and goods that drive the world’s economy, C.H. Robinson aligns strongly with sennder’s mission and values to create an efficient and sustainable road freight network in Europe. We are deeply impressed by the European Surface Transportation team from C.H. Robinson, and with our combined business and enhanced talent pool, we can deliver substantial growth and operational scale, accelerating our European expansion and increasing network density and digital capabilities for the benefit of carriers, shippers, and the wider industry. We are excited to welcome the EST team, and embark on the next chapter of sennder’s journey.”

C.H. Robinson is working closely with all groups to ensure a smooth transition that maintains the high standards of service that both C.H. Robinson and sennder's customers and employees have come to expect.

EST has been a subsidiary of C.H. Robinson since 1994 and provides transportation and logistics services, including truckload and LTL transportation services, across Europe.

The closing of the transaction is subject to certain customary conditions and regulatory approvals and is expected to close in the fourth quarter of 2024. C.H. Robinson will not have further comments until its second quarter 2024 earnings conference call that is scheduled for Wednesday, July 31, 2024 at 5:00 p.m. Eastern Time.

Morgan Stanley & Co. LLC acted as C.H. Robinson’s financial advisor and HVG Law B.V. acted as its legal advisor. Terms of the transaction are not disclosed.

About C.H. Robinson

C.H. Robinson is one of the original logistics leaders. Companies around the world look to us to reimagine supply chains, advance freight technology, and solve logistics challenges—from the simple to the most complex. Over 90,000 customers and 450,000 contract carriers in our network trust us to manage $22 billion in freight annually. Through our unmatched expertise, unrivaled scale, and tailored solutions, we ensure the seamless delivery of goods across industries and continents via truckload, less-than-truckload, ocean, air, and beyond. As a responsible global citizen, we make supply chains more sustainable and proudly contribute millions to the causes that matter most to our employees. For more information, visit us at chrobinson.com (Nasdaq: CHRW).

About sennder

sennder, a leading digital road freight forwarder in Europe, is offering shippers access to a connected fleet of thousands of trucks. In a traditional industry, sennder is moving fast and focuses on the digitization and automation of all road logistics processes. sennder deploys over 40,000 trucks across Europe, with access to more than 120,000 vehicles, and has a team of over 1,000 people. By leveraging its proprietary technology, sennder is creating an ecosystem that leads the industry into the 21st century with enhanced transparency, efficiency, and flexibility, as well as advanced sustainable transport solutions. sennder is backed by some of Europe’s leading investors including Baillie Gifford, Accel, HV Capital and Lakestar along with industry experts Poste Italiane and Scania to assure innovation and state of the art offerings.

CHRW-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730654304/en/

FOR MEDIA INQUIRIES, CONTACT:

Kelsey Soby, Sr. Dir. of Communications & Marketing

Email: PublicRelations@chrobinson.com

FOR INVESTOR INQUIRIES, CONTACT:

Chuck Ives, Director of Investor Relations

Email: chuck.ives@chrobinson.com

FOR SENNDER MEDIA INQUIRIES, CONTACT:

Marisa Wagner, Kekst CNC

Email: press@sennder.com

+49 1525 437 2777

Source: C.H. Robinson

FAQ

What is C.H. Robinson selling to sennder Technologies GmbH?

C.H. Robinson is selling its European Surface Transportation (EST) business to sennder Technologies GmbH, a digital road freight forwarder in Europe.

When is the sale of CHRW's European Surface Transportation business expected to close?

The sale is expected to close in the fourth quarter of 2024, subject to customary conditions and regulatory approvals.

What are the four core modes C.H. Robinson (CHRW) is focusing on after this sale?

C.H. Robinson is focusing on North American truckload, less-than-truckload, global ocean, and air as its four core modes.

Will C.H. Robinson (CHRW) maintain any presence in Europe after selling EST?

Yes, C.H. Robinson will maintain its global forwarding and managed services presence in Europe, continuing to invest in key trade lanes, products, and technology within the region.