C.H. Robinson Acquires Prime Distribution Services
MINNEAPOLIS, MN - C.H. Robinson has honed in on strategic growth opportunities of late, initially by bringing on a new Chief Financial Officer in August and a new President for Robinson Fresh in December. With its most recent announcement, the logistics company will advance its expansion from a different angle, acquiring the major distribution company Prime Distribution Services from Roadrunner Transportation. The agreement is subject to certain customary closing conditions, including regulatory approval.
“Prime Distribution Services is a high-quality growth company that brings scale and value-added warehouse capabilities to our retail consolidation platform, adding to our global suite of services,” said Bob Biesterfeld, C.H. Robinson Chief Executive Officer. “Prime has an outstanding track record of success, a talented and experienced team, and a focus on delivering great value to its customers and carriers.”
According to a press release, Prime had $108.7 million in total revenues for the fiscal year 2019, and C.H. Robinson intends to purchase Prime for approximately $225 million in cash. The acquisition is expected to be slightly gradual in 2020 and will be financed through cash on-hand and funds drawn from C.H. Robinson’s existing credit facilities.
“Prime Distribution brings capabilities and synergies to our North American Surface Transportation business and allows us to provide a strategic advantage for our customers delivering to retailers,” said Mac Pinkerton, President of North American Surface Transportation of C.H. Robinson. “We are excited to welcome the talented team at Prime to C.H. Robinson, and we will work hard to create even more value for our combined set of employees, customers, and carriers.”
Prime Distribution Services provides a comprehensive suite of retail consolidation solutions, including distribution, fulfillment, and inventory management, and currently operates as a wholly-owned subsidiary of Roadrunner Transportation. Founded in 1990 and headquartered in Plainfield, Indiana, Prime employs approximately 270 people and has five fulfillment and distribution facilities totaling approximately 2.6 million square feet across the U.S., currently serving approximately 140 customers.
“In joining C.H. Robinson, Prime begins an exciting new chapter,” said Bill Vechiarella, President of Prime Distribution Services. “We believe this combination will position us well to continue to provide excellent service to our customers and foster growth by leveraging C.H. Robinson’s scale, expertise, and core service offerings.”
Once the deal closes, C.H. Robinson will integrate Prime Distribution Services into its North American Surface Transportation division and single global, multimodal technology platform, Navisphere®.
To see how C.H. Robinson continues to grow in 2020, stick around for reports from AndNowUKnow.