C.H. Robinson announced it has entered into a definitive agreement to acquire Prime Distribution Services (Prime), a provider of retail consolidation services in North America, from Roadrunner Transportation. The agreement is subject to certain customary closing conditions, including regulatory approval.
Prime had $108.7m in total revenues for the fiscal year ended December 31, 2019. C.H. Robinson intends to purchase Prime for approximately $225m. The acquisition is expected to be slightly accretive in 2020 and will be financed through cash on hand and funds drawn from C.H. Robinson’s existing credit facilities.
Bob Biesterfeld, C.H. Robinson Chief Executive Officer said: “Prime Distribution Services is a high-quality growth company that brings scale and value-added warehouse capabilities to our retail consolidation platform, adding to our global suite of services”.
Prime provides a suite of retail consolidation solutions, including distribution, fulfillment and inventory management, and currently operates as a wholly-owned subsidiary of Roadrunner Transportation. Founded in 1990 and headquartered in Plainfield, Indiana, Prime employs approximately 270 people and has five fulfillment and distribution facilities totalling approximately 2.6m sq ft across the United States. Prime currently serves approximately 140 customers.
Once the deal closes, C.H. Robinson will integrate Prime Distribution Services into its North American Surface Transportation division and single global, multimodal technology platform, Navisphere®.
Mac Pinkerton, President of North American Surface Transportation of C.H. Robinson said: “Prime Distribution brings capabilities and synergies to our North American Surface Transportation business and allows us to provide a strategic advantage for our customers delivering to retailers”.
Source: C.H. Robinson
