Freight forwarder, C.H. Robinson Worldwide Inc., has announced plans to acquire Phoenix International for approximately $635 million.
In 1979, businessman, Bill McInerney, founded the Minneapolis-based company which has since been dealing with international air freight and sea freight shipments.
“We view this as a nice acquisition that allows the company to further diversify away from the truck brokerage business without straining, at a time when high costs are hurting the trucking industry”, said John Barnes, RBC Capital Markets analyst.
Moreover, C.H. Robinson hopes that their latest business deal will allow them to play a pivotal role in the international freight forwarding industry offering trucking, sea and air freight services. It will pay Phoenix a staggering $571.5 million in cash as well as $63.5 million in new stock amounting to a total sum of $635 million, confirmed Reuters.com.
Phoenix currently employs more then 2,000 people in its 74 offices.