MINNEAPOLIS (AP) — The trucker C.H. Robinson Worldwide Inc. said Tuesday that it has a deal to buy the freight services company Phoenix International Inc. for about $635 million in cash and stock.
The deal includes $571.5 million in cash and about $63.5 million in newly-issued shares of the Minneapolis-based trucking and logistics company's stock. It's expected to close in the fourth quarter.
Chicago-based Phoenix mainly provides international freight forwarding services, including ocean, air and customs brokerage, serving about 15,000 customers around the world. The privately-held company has about 2,000 employees, in 76 offices in 15 countries.
For the fiscal year that ended June 30, Phoenix's net revenue totaled about $161 million. It posted adjusted operating income of about $48 million.
C.H. Robinson said it plans to use existing cash and to enter into a revolving credit facility to finance the cash part of the deal. It said it expects the acquisition to be modestly accretive in the first year.
When the deal closes, Bill McInerney, Phoenix's executive chairman and founder, will retire. Other key executives will move to positions with C.H. Robinson. The company's CEO, Stephane Rambaud, will lead the combined company's international freight forwarding services, C.H. Robinson said.
C.H. Robinson shares rose $1.63, or 2.8 percent, to $60.20 in morning trading. Its shares are up 18 percent from a 52-week low of $50.81 in late July.