C.H. Robinson Worldwide Inc. says it's buying Phoenix International Inc. for $571.5 million in cash and approximately $63.5 million in newly issued C.H. Robinson stock.
This is the giant 3PL's second acquisition this month. Earlier in September, it acquired Apreo Logistics S.A. of Warsaw, Poland, a freight firm.
Chicago-based Phoenix primarily provides international freight forwarding services, including ocean, air, and customs brokerage, and currently serves approximately 15,000 customers globally. Phoenix has approximately 2,000 employees, located in 76 offices in 15 countries.
Bill McInerney, executive chairman of Phoenix, founded the company in 1979. Following the completion of the acquisition, McInerney plans to retire. Other key executive management will assume management positions with C.H. Robinson.
Analysts say the move will help diversify C.H. Robinson away from the truck brokerage business.
The agreement to acquire Chicago-based Phoenix is subject to certain customary closing conditions, including regulatory approval. Closing of the acquisition is expected to occur in the fourth quarter of 2012. C.H. Robinson will use existing cash and plans to enter into a revolving credit facility with major banks to finance the cash portion of the purchase price.