Jan 5, 2015, 12:05pm CST
C.H. Robinson Worldwide Inc. says it has closed its $365 million acquisition of Freightquote.
Reporter-Kansas City Business Journal
On Monday, the Eden Prairie, Minn., third-party logistics company (Nasdaq: CHRW) announced that it finalized its purchase of Kansas City-based Freightquote.com Inc. C.H. Robinson said in a release that the cash acquisition was financed using the proceeds from an amended five-year, $900 million credit facility.
The deal closed about a month after the acquisition was announced in early December. Tim Gagnon, director of investor relations for C.H. Robinson, said more information on the transaction, and its effects in Kansas City and Eden Prairie, will be released when the company issues its Securities and Exchange Commission filing on the finalized acquisition, probably by the end of the week.
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Gagnon said there are no planned changes to employment at Freightquote. C.H. Robinson expects Freightquote's local employment to grow along with the company's business. For now, C.H. Robinson will work to ensure that the integration of the two operations, and their respective customers, goes smoothly, he said.
Freightquote will retain its name and branding while working as part of C.H. Robinson's worldwide operation. Tim Barton, Freightquote's founder and current executive chairman, will be a consultant. Freightquote CFO Matt Druten will become the freight broker's president.
Gagnon said C.H. Robinson's executives will discuss the acquisition, and its effects on both entities, during the company's year-end conference call. The Nasdaq exchange estimates the earnings statement will be released in early February.
After soaring on the heels of the acquisition annoucement, C.H. Robinson stock has returned to a level near its pre-acquisition valuation. The price rose as high as $77.16 on Dec. 24, its highest in 2014, from $70.59 a share on Dec. 1 — the acquisition announcement date. About 11:15 a.m. Central on Monday, the stock was trading for $70.71.
Austin reports about construction, transportation, engineering and architecture.