By Ari Ashe September 5 2017 / Transport Topics
C.H. Robinson has acquired Montreal-based Milgram & Co. for about $50 million, enhancing the U.S. company’s customs brokerage and freight forwarding options in Canada.
Milgram also provides surface transportation and warehousing services to 3,500 customers through six Canadian and one U.S. office. For the fiscal year ending May 31, 2017, Milgram generated C$155.3 million (about $124 million) in top-line revenue.
“This acquisition continues our global expansion and marks our third Global Forwarding acquisition in the past five years. We are extremely proud of the progress we have made in bringing these companies into C.H. Robinson, and Milgram provides another unique opportunity to strengthen our global forwarding and customs brokerage offerings in Canada,” C.H. Robinson CEO John Wiehoff said in a statement.
The acquisition will be neutral to earnings in 2017 but slightly increase profits in 2018. C.H. Robinson announced that the transaction will be financed through cash and funds drawn from its line of credit.
“We are excited to build on our success providing supply chain expertise and execution, refining processes and being an integral part of our customers’ businesses,” Milgram CEO Jay Goldman said. C.H. Robinson will integrate Milgram into its Global Forwarding division, which operates in five continents and 31 countries through 125 offices worldwide.
“This acquisition strengthens our ability to continue to serve the world’s shippers and help them meet their global supply chain goals,” said Mike Short, president of C.H. Robinson’s Global Forwarding division. “Milgram has built a successful business doing things the right way, serving customers and exceeding their expectations. We look forward to bringing their talented team to C.H. Robinson.”