CH Robinson (CHR) has announced it will sell its European Surface Transportation (EST) subsidiary to European digital road freight forwarder Sennder, ahead of tomorrow’s Q2 financial results.
CHR said the sale was a strategic move “to get fit, fast and focused”, and it would turn its attention to its global ocean and air businesses, and North American truckload and less-than-truckload sector.
“To win, we need to focus on what sets us apart and build upon our competitive advantages ,” said president and CEO Dave Bozeman.
EST has been a subsidiary of CH Robinson since 1994, providing logistics services across Europe. Being part of Sennder would aid in “unlock[ing] the full power of network density and technology for the European road freight industry and accelerate decarbonisation efforts”, said the forwarder.
The combined business will become a top-five full truck load (FTL) player in Europe with a combined revenue of €1.4bn ($1.51bn), 1,700 employees and a footprint in 20 European locations.
After the sale, some 6,500 shippers and more than 15,000 carriers will become part of the Sennder network.
CEO David Nothacker said “This acquisition will be pivotal in advancing Sennder’s roadmap… CH Robinson aligns strongly with Sennder’s mission and values to create an efficient and sustainable road freight network in Europe.
“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.”
The closing of the transaction is expected in Q4, but it is subject to regulatory approval.
Mr Bozeman said: “Europe remains an important strategic market for us, and we are committed to our global forwarding and managed services presence there,” and he confirmed that CHR would “continue to invest in key tradelanes, products and technology” in Europe.
CH Robinson is one of the world’s largest logistics providers and manages $22bn in freight and 20m annual shipments.