MINNEAPOLIS — C.H. Robinson, a leading global third party logistics (3PL) company, continues to expand its global presence with today’s acquisition of Milgram & Company Ltd. (“Milgram”), a world-class provider of freight forwarding, customs brokerage, and surface transportation in Canada.
“Today, we are bringing one of Canada’s most respected forwarding companies into C.H. Robinson,” said John Wiehoff, Chairman and Chief Executive Officer of C.H. Robinson. “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. We look forward to working with Milgram’s customers to offer our full suite of logistics services to help improve their supply chains.”
Milgram is a leading provider of customs brokerage and freight forwarding, in addition to providing surface transportation and warehousing services, to 3,500 active customers. Headquartered in Montreal, Quebec, Milgram employs approximately 330 employees and has six offices in Canada and one office in the United States. Milgram is a gold standard winner of Canada’s Best Managed Companies®. For the fiscal year ending May 31, 2017, Milgram had approximately $155.3 million CAD (approximately $124 million USD) in gross revenues.
C.H. Robinson purchased Milgram & Company Ltd. for approximately $62 million CAD (approximately $50 million USD) in cash. The acquisition is expected to be approximately neutral to earnings in 2017 and slightly accretive in 2018 and will be financed through cash and funds drawn from C.H. Robinson’s existing revolving credit facility.
“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, President and Chief Executive Officer of Milgram & Company Ltd. “We now look forward to collaborating with C.H. Robinson to grow our presence and provide our customers with the opportunity to leverage C.H. Robinson’s worldwide network and world-class service offerings.”
C.H. Robinson’s Global Forwarding business currently serves five continents and 31 countries, with over 4,000 employees and 125 offices worldwide, and is the #1 non-vessel operator (NVO) from China to the United States. Global Forwarding customers leverage C.H. Robinson’s considerable freight volumes to access available capacity at competitive rates.
“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.”
C.H. Robinson will integrate Milgram into its Global Forwarding division and single global technology platform, Navisphere®.
About C.H. Robinson
At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world’s economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world’s largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 113,000 customers and 107,000 contract carriers through our integrated network of offices and more than 14,000 employees. In addition, the company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations. Headquartered in Eden Prairie, Minnesota, C.H. Robinson (CHRW) has been publicly traded on the NASDAQ since 1997. For more information, visit http://www.chrobinson.com or view our company video.
About Milgram & Company Ltd
Milgram & Company Ltd. is a leading provider of customs brokerage and international freight forwarding in Canada. The company also provides consulting and trade advisory, surface transportation in North America, and warehousing and distribution capabilities. The company was founded in 1951 and is based in Montreal, Quebec.
Forward-Looking Statements
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports. In addition, such forward-looking statements relate to the closing date of the acquisition and the anticipated benefits of the acquisition. Actual results could differ materially from those projected in these forward-looking statements as a result of (i) the inability of C.H. Robinson to satisfy the conditions to the consummation of the acquisition; (ii) unforeseen difficulties in integrating the operations of Milgram & Company Ltd.; or (iii) unanticipated negative reaction to the proposed transaction by customers or suppliers. In addition, our expectation regarding the increase in our current revolving credit facility is subject to negotiation of acceptable terms and documentation with the lenders. Any forward looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date.
Source: C.H. Robinson
