YRC Worldwide Acquires Shanghai Jiayu Logistics Co., Ltd.

Acquisition extends YRC Worldwide portfolio of services in China with reliable ground transportation

YRC Worldwide (Nasdaq: YRCW) today announced that YRC Logistics
successfully closed its acquisition of Shanghai Jiayu Logistics Co., Ltd.,
one of the largest providers of truckload and less-than-truckload ground
transportation services in China. With over 30,000 customers, 1,800
employees, 200 locations and a network of more than 3,000 vehicles, Jiayu
provides an ideal platform for YRC Worldwide to support the needs of both
local Chinese customers and large multinational companies with
transportation requirements in China.

"By virtue of Jiayu's mature network and well developed operational
resources, we can help our customers to improve transportation reliability,
compliance, data integrity and visibility for their shipments in China,"
said Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Shanghai
Jiayu Logistics represents a key link in building an end-to-end supply
chain capability."

YRC Logistics acquired 65 percent of the stock of Jiayu for US $44.7
million. YRC Logistics expects to purchase the remaining 35 percent
interest in 2010, for an amount not to exceed US $39 million, as determined
by the level of Jiayu's 2008-09 financial performance.

Jim Ritchie, President and CEO of YRC Logistics added, "Since entering
into the agreement with Jiayu in December 2007, we have seen strong
customer interest, and we believe the comprehensive services have a
tremendous appeal to the China market and to our customers based in the
U.S."

YRC Logistics, a wholly-owned subsidiary of YRC Worldwide, is a global
logistics company. Based in Overland Park, Kansas, and with offices in
North America, Asia, Europe and South America, YRC Logistics enables
companies to improve their transportation network and overall supply chain
efficiency by offering flexible logistics solutions supported by Web-hosted
technology and global logistics management capabilities.

YRC Worldwide Inc., a FORTUNE 500 company and one of the largest
transportation service providers in the world, is the holding company for a
portfolio of successful brands including Yellow Transportation, Roadway,
Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF
Glen Moore. The enterprise provides global transportation services,
transportation management solutions and logistics management. The portfolio
of brands represents a comprehensive array of services for the shipment of
industrial, commercial and retail goods domestically and internationally.
Headquartered in Overland Park, Kan., YRC Worldwide employs approximately
60,000 people.

CPC Logistics acquires Huron Services Group

MISSISSAUGA, Ont. -- CPC Logistics has moved into the Canadian market, establishing a Canadian company called Logistics Professionals Ltd. and then promptly acquiring Huron Services Group.

CPC specializes in contract truck driver and related logistics services. It will use its acquisition of Huron Services Group to enhance the resources of its existing Canadian operations and to assist in expanding operations in Alberta, Ontario and Quebec, the company said in a release.

"We had been aware of Huron's outstanding reputation for providing high quality logistics services in Canada. They have been in business for 40 years and their philosophy for customer service and cooperation mirrors ours," announced John Bickel Sr., president of CPC Logistics. "When this opportunity was presented to CPC we immediately took steps to close the transaction as soon as possible."

"We are proud to join the CPC Canada family," added John Thomson, president of Huron Services Group. "CPC's excellent service and dedication to finding, together with their customers, mutually beneficial solutions to a variety of logistics and transportation issues are values which we have always held as priorities with our customers. We are pleased to be able to call upon the vast and value added services and resources that CPC, as a North American logistics leader, can offer in support of the services we can bring to our customers."

Arcapita announces acquisition of CEPL - leading European warehouse logistics operator

ArcapitaArcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, today announced that it and its affiliates have signed a definitive purchase agreement to acquire Compagnie Européenne de Prestations Logistiques (“CEPL”), a leading European warehouse logistics service provider, from French private equity firm Sagard, and current management. Terms of the transaction were not disclosed but the deal ranks as the largest LBO in France this year.

CEPL, headquartered in Béville le Comte, France, operates across 23 sites in France and Germany, and has approximately 2,200 employees.

Founded in 1998, CEPL provides clients with a single managed central location from which it prepares detailed orders for individual retail outlets on a national, pan-European or global basis. The current management team, led by Thierry Ortmans, CEO and founder, and Akim Lamrani, COO, will continue in their current roles and have increased their equity investment in the business.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said “This is one of the few transactions of this size in Europe to have secured LBO financing in these tough market conditions, which attests to the quality of the business, as well as the strong reputation that Arcapita has built within Europe.”

Arcapita managed the transaction out of its London office. Mounzer Nasr, head of Arcapita’s European Corporate Investments added “Through their dedication to exceptional levels of service and operational excellence, Thierry Ortmans and his highly motivated management team have built up a very high quality portfolio of customers within a short time frame. Arcapita currently owns more than 5 million square meters of industrial warehouse facilities globally, and the acquisition of CEPL has the potential for significant synergies with our existing portfolio of logistics investments. We look forward to working with the current management team and employees, and investing in CEPL’s next phase of growth.” Arcapita’s portfolio of industrial warehouses is one of Europe’s largest, and it has recently added Pinnacle, a fast growing industrial warehouse developer and operator in Central and Eastern Europe, to its existing investments in the sector.

Thierry Ortmans, CEO and founder of CEPL said: “We are extremely pleased to have secured investment from an international partner of the caliber of Arcapita. This is an important milestone in the development of CEPL and we believe that with their experience in the sector, Arcapita will be a valuable partner as we continue the international growth of CEPL.”

Financing for the transaction was provided by a consortium of banks including RBS, SocGen, Calyon and ING.

Owens & Minor Announces Plans to Acquire The Burrows Company, a Midwest-based Medical & Surgical Supply Distribution Business

Owens & Minor (NYSE: OMI: 46.02, +0.30, +0.65%) announced today that it has signed a definitive agreement to acquire certain assets and liabilities of The Burrows Company, a Chicago-based, privately-held distributor of medical and surgical supplies to the acute-care market. For the year ended December 31, 2007, The Burrows Company reported revenues of $603 million. Owens & Minor will pay $30.2 million for the net assets of The Burrows Company and will assume the company's debt. The final purchase price will be subject to certain post-closing adjustments. The acquisition is expected to be slightly dilutive to Owens & Minor's earnings for the remainder of 2008. However the company's guidance for diluted earnings per share for 2008, including the impact of the acquisition, remains unchanged at $2.30 to $2.40.

"The acquisition of The Burrows Company, a large regional distributor with more than 75 years of experience in the acute-care market, is a strong geographic fit for Owens & Minor," said Craig R. Smith, president & chief executive officer of Owens & Minor. "The Burrows Company has a great reputation for customer service and operational excellence, and we are very excited about the prospect of bringing on this new business in the fall. Based on the success of our most recent acquisition, we are preparing a conversion plan that will provide customers with an orderly transition. Once the transition is concluded, we expect to leverage the revenue base and introduce these customers to the benefit of our value-added programs and services, as well as our supply-chain management expertise."

The transaction is expected to close in the fall, pending regulatory approvals. Immediately following the close of the transaction, Owens & Minor will launch a conversion process designed to transition The Burrows Company customers to Owens & Minor's systems by the end the second quarter of 2009. Subsequent to closing, Owens & Minor will provide additional detail on the transaction.

The Burrows Company, headquartered in Chicago, has served the acute-care provider industry's medical and surgical distribution needs since 1932, and is the nation's largest independently owned medical/surgical distributor of branded products in the country. The Burrows Company aims to help customers control and reduce health care expenditures, as well as achieve measurable savings and supply chain efficiencies. To learn more about the company, visit its website at www.burrowsco.com.

Owens & Minor, Inc., (NYSE: OMI: 46.02, +0.30, +0.65%) a FORTUNE 500 company headquartered in Richmond, Virginia, is the leading distributor of national name-brand medical and surgical supplies and a healthcare supply-chain management company. Owens & Minor is also a member of the Russell 2000(R: 69.13, +2.42, +3.62%) Index, which measures the performance of the small-cap segment of the U.S. equity universe, as well as the S&P SmallCap 600, which includes companies with a market capitalization of $300 million to $2 billion that meet certain financial standards.

With a diverse product and service offering and distribution centers throughout the United States, the company serves hospitals, integrated healthcare systems, alternate care locations, group purchasing organizations, the federal government and consumers. Owens & Minor provides technology and consulting programs that improve inventory management and streamline logistics across the entire medical supply chain--from origin of product to patient bedside.

Deutsche Bahn Plans to Acquire Romtrans, FT Deutschland Says

Deutsche Bahn AG plans to buy Romtrans SA, a Romanian transport company, FT Deutschland reported, without saying where it got the information.

The purchase, costing 80 million euros ($118 million) to 100 million euros, would enable Berlin-based Deutsche Bahn to expand in the rapidly growing eastern European market, the German newspaper reported. Deutsche Bahn also foresees the acquisition helping boost interest in the initial public offering of the DB Mobility Logistics AG train division in which it aims to sell a 24.9 percent stake in late October, FT Deutschland said.

Romtrans reported sales of 78 million euros in 2007 and has a workforce of 1,300, the newspaper reported. The company isn't ``especially profitable,'' FT Deutschland said, citing unidentified people familiar with the company.

UPS said to be near buying European delivery service

Speculation surged (again) Friday that UPS plans to buy TNT NV, Europe’s No.2 express-delivery service.

Amsterdam-based TNT’s stock rose nearly 7 percent after The Times (of London) reported the deal may be done as soon as this weekend.

The Times said UPS would pay 34 euros to 38 euros per share, though the paper did not cite a source. That would mean a bid in the range of $19 billion to $21.3 billion.

But on-again, off-again rumors have persisted for years that UPS or its chief rival, Memphis-based FedEx, was on the verge of buying TNT. It’s unclear whether the latest flare-up is real or investor speculation intended to trigger a TNT stock rally.

Sandy Springs-based UPS had little official comment. “UPS will never discuss rumors and speculation about mergers or acquisitions,” spokesman Norman Black said.

If it came to pass, the acquisition would be the company’s largest by far.

Recent news reports have been varied.

In July, The Financial Times reported FedEx had the deal tied up, giving TNT’s stock its biggest boost since the company went public in 1998.

Then in early August, European news agencies said that UPS would bid more than $15 billion for TNT.

UPS controls about 10 percent of the European express business and buying TNT would add about 15 percent, according Satish Jindel, president of SJ Consulting in Pittsburgh. It would also make UPS the No. 1 express carrier in Europe; German-owned DHL is first with 22 percent of the market.

The speculation coincides with a big UPS deal back home. DHL wants to outsource its North American air cargo shipments to UPS. That proposed deal is getting political scrutiny in Washington because it would result in the closure of a Wilmington, Ohio, air hub and critics have raised antitrust concerns. If completed, DHL would become a $1 billion-per-year customer of UPS.

Two U.S. analysts have been skeptical about recent reports of a TNT deal, though they said it would make sense for UPS or Fedex some day.

Jon Lagenfeld, a transportation/logistics analyst for Robert W. Baird & Co., wrote the following in a note to clients on Aug. 11: “Speculation emerges that UPS now [is] looking to acquire TNT. Speculation of a TNT takeout has persisted for years, so we hesitate to draw any conclusions; however, we believe the deal would be strategically positive for either FedEx or UPS. We believe FedEx needs TNT more than UPS, but UPS could afford to pay more.”

Baltimore-based analyst David Ross with Stifel Nicolaus completed the picture. “Ultimately,” he said in an interview Friday, “it might make sense for UPS or FedEx to acquire TNT to gain a stronger foothold in Europe. It makes more sense for FedEx because UPS has a stronger presence in Europe.

“We give no more credibility to this [rumor] than others,” said Ross, whose firm supplies investment banking services to both FedEx and UPS. If one of the American companies bought TNT, the success of the acquisition would depend upon the price paid and the integration strategy, he said.

Either carrier would probably want to sell TNT’s mail division, which is “non-core” to the express package delivery business, he said.

TNT started as a public mail company in the Netherlands. It has grown to compete with FedEx, UPS, DHL and CH Robinson Worldwide. TNT is in 200 countries, has more than 159,000 employees, and had revenues of Euros 11 billion in 2007 — or $16.28 billion in today’s dollars.

According to Ford Equity Research, TNT also has made some inroads into Asia. TNT has created a road network linking 120 cities in China, where UPS also is making significant investments.

Still, there is nothing convincing Ross that now is the time for UPS to strike.

“We don’t think the current market is any more or less favorable than the last few years,” he said.

UPS stock closed Friday at $63.52, a 2 percent gain.

Direct Logistics eyes cos in N America & Europe

MUMBAI: After acquiring Chinese logistics firm Shenzen Dida, Mumbai-based Direct Logistics has firmed up plans to acquire two freight forwarding companies — one each in North America and Western Europe — for a total cost of Rs 400 crore.

Confirming the development, Direct Logistics CMD Sunil Devrani told ET that the proposed acquisition is in line with the company’s plan to enhance its global presence. “The recent increase in trade volume in the US and Europe from India and China would help the company if it has presence in these foreign shores. The acquisitions will help Direct Logistics derive better economies of scale by having operations in India and other countries.”

Direct Logistics acquired Shenzhen Dida for an undisclosed sum last year. The foreign company has sales of around Rs 25 crore. It has a strong presence in Southern China and Hong Kong. Direct Logistics hopes that its Chinese business will contribute around 60% to its total business in three years.

Mr Devrani said Direct Logistics may go for an IPO in the near future. Moreover, the company is also looking at venture capital funding to fund its growth requirements. Sidbi Venture Capital, the venture capital arm of Sidbi, had picked up an 11 per cent stake in Direct Logistics for Rs 15 crore two years ago.

Direct Logistics is planning to set up offices in Shenzhen, Shanghai, Foshan, Beijing, Qingdao and Tianjin. It also plans to set up a pan-Asia network, including countries such as Singapore, Taiwan, Vietnam, Thailand, and to earn around Rs 100 crore from these countries in the next couple of years.

It has ambitious expansion plans at home too. The company plans to set up nine offices in India. The list of these locations include Pune, Jaipur, Ludhiana and Coimbatore. Now, the company operates from all metro cities.

Tuscan Ventures acquires 12.45% stake in LCL Logistix

Tuscan Ventures has invested in LCL Logistix, formerly LCL Agencies, one of India`s largest freight forwarders and 3PL services provider with 33 offices and 400+ employees.

This investment, which gives Tuscan Ventures a 12.45% ownership stake in LCL Logistix for an undisclosed sum, comes in the backdrop of burgeoning trade to and from India and the increasing propensity of the trade to engage professional and experienced service providers to manage their supply chains effectively.

Head quartered in Mumbai, LCL Logistix`s core product and service offering includes tailored containerised logistics solutions to all major destinations globally. In addition, LCL Logistix offers fixed weekly less than container load and project cargo handling services to all major corridors.

Tuscan Ventures specializes in value creation through operational excellence in supply chain, logistics and transportation infrastructure. With offices in Mumbai and Singapore, Tuscan Ventures` unique value proposition is to build operating businesses within the wider shipping, logistics and transportation sector in India and South East Asia, while making strategic financial investments which are synergistic to its operating businesses. Tuscan Ventures has over 40 years of combined in-house experience in the global maritime and logistics sector including container shipping, ports, supply chain management, vessel operation and management.

Oreport Taken Over By Grindrod Group

GRINDROD, the shipping and logistics group, has acquired the remaining 50% stake it did not already own in Oreport, an industrial raw material procurement specialist, for an undisclosed amount.

Grindrod acquired a half share in Oreport in 2005 for R40m, which provided the company with access to new cargo markets.

At the time, the company said Oreport would contribute R8m-R10m to its bottom line.

"There are a number of synergies between the value chain of Oreport and services and businesses of the wider Grindrod group. This acquisition provides opportunity for further growth of our trading division," Grindrod company secretary Craig Robertson said last week.

The acquisition already has regulatory approval. Last month, the Competition Tribunal unconditionally approved the merger between Grindrod and Oreport.

Oreport sources and transacts trade in cargoes including alloys, steel, coal and minerals.

Robertson said the deal provided diversification benefit as the company was now involved in agricultural commodities, fuels and industrial products.

Grindrod's trading division owns both Atlas Trading & Shipping, which focuses on agricultural commodities, and Cockett Marine Oil, which deals with marine fuel and lubricants.

"The businesses within the trading division, especially Atlas Trading & Shipping and Oreport, often provide base load cargo for the group's owned and operated vessels," said Brendan McIlmurray , CEO of Grindrod's trading division.

Nashville firm buys second Knoxville delivery company

For the second time this year, Nashville-based CrossTown Courier has purchased a Knoxville delivery company. CrossTown’s latest acquisition is Dowers Delivery Service, which provides freight services throughout East Tennessee, North Alabama and North Georgia.

Financial terms were not disclosed.

“It fits completely perfectly with our warehouse and distribution operations,” CrossTown President Steven Seger said Tuesday.

Dowers major customers are The Mattress Outlet and Mattress Gallery, according to a news release issued by CrossTown.

CrossTown provides transportation, logistics, and warehouse distribution for customers throughout the Southeast. The company has warehouse and office facilities in Chattanooga, Knoxville, Memphis, and Nashville.

Although the economy has been sluggish in recent months, CrossTown is committed to growth through acquisition, Seger said.

CrossTown is considering other possible acquisitions in the Knoxville area, but Seger declined to identify the companies.

In May, CrossTown acquired the business operations of ASAP Courier of Knoxville, a provider of scheduled trucking and on-demand expedited transportation services. ASAP’s customers included UPS Supply Chain Solutions, Averitt, Old Dominion Freight Lines and Central Transport.

Earlier this year, CrossTown also acquired Premiere Express Courier in Chattanooga.

More news as it develops online and in Wednesday’s News Sentinel.

Ryder Agrees to Acquire Philadelphia-Based Gordon Truck Leasing

Ryder System, Inc. (NYSE: R), a global leader in transportation and supply chain management solutions, today announced it has reached an agreement to acquire substantially all the assets of Gordon Truck Leasing, a full service truck leasing, commercial truck rental, and fleet services company headquartered in Philadelphia, Pa. The acquisition is expected to be finalized later this month and is subject to customary closing conditions.

"Gordon Truck Leasing is a high quality and well-managed transportation service provider with a strong reputation in the metropolitan Philadelphia area," said Ryder Chairman and Chief Executive Officer Greg Swienton. "We are pleased to be able to add new customers to our existing locations, as well as provide them with the additional services and solutions for which Ryder is recognized in the industry."

Per the terms of the transaction, Ryder will acquire Gordon's fleet of approximately 430 full service lease units, 45 rental units, and 35 held-for-sale units and approximately 130 contract customers of Gordon Truck Leasing currently served by its five locations in the Philadelphia market.

"Ryder has been a reputable market leader for 75 years supporting more than 16,000 customers globally," said Drew Gordon, President and Owner of Gordon Truck Leasing. "Ryder will be able to provide Gordon's customers with new resources, increased product offerings, and a large network of service locations which will help customers grow in the competitive marketplace."

SATS to come under MMC fold under RM1.95b deal

Low-profile tycoon Tan Sri Syed Mokhtar Albukhary, who controls MMC Corp Bhd, is injecting Senai Airport Terminal Services Sdn Bhd (SATS) into the group in a RM1.95bil deal.

Under the exercise announced yesterday, MMC would finance the acquisition with the issuance of 696.43 million new shares at RM2.80 each. This would transfer ownership of SATS, which is reportedly privately held by Syed Mokhtar, to MMC.

Encompass Group Finalizes the Acquisition of Tritronics Inc.

NEW YORK--(BUSINESS WIRE)--Encompass Group Affiliates, Inc. (OTC Bulletin Board: ECGA), an integrated company serving the consumer electronics segment of the reverse logistics industry, announced today that it has completed the acquisition of privately held Tritronics Inc. An industry-leading original equipment manufacturer parts distributor for over thirty years, Tritronics has operations in Baltimore and Miami, and distributes consumer electronic replacement parts and accessories to thousands of independent service dealers and OEM authorized service centers throughout the United States and Mexico.

The Company acquired all of the outstanding equity interests in Tritronics in exchange for consideration consisting of $9 million in cash, a subordinated promissory note in the principal amount of $1 million and an equity interest in the Company in the form of approximately 2.8 billion restricted shares of the Company’s common stock.

The acquisition and related transaction costs were financed from the issuance of Series B subordinated notes from the Company’s existing lending sources and the sale of approximately $4.2 million of Series E redeemable non-convertible preferred stock to certain of the Company’s existing investors, principally to an affiliate of H.I.G. Capital, LLC.

Wayne I. Danson, Encompass Group’s president and chief executive officer explained the strategic impact of the acquisition. “With Tritronics joining the Encompass family of companies, our distribution power is dramatically enhanced. It immediately enables us to expand our distribution from a largely institutional base to include thousands of smaller independent service centers and authorized service centers operating throughout the United States.” said Danson. “Coupled with its sister company, Vance Baldwin, Tritronics will also expand our service and value-added offerings, and adds the proven management talent of Tritronics’ Kim Wagner, Randy Williams and Jim Scarff, each of whom will continue to manage and operate Tritronics’ business.”

Danson noted that, “The Tritronics acquisition follows Encompass Group’s recent designation as the sole primary North American digital parts distributor for Philips Electronics. These two events will result in an immediate growth in our distribution business of over 50%, less than one year after our acquisition of Vance Baldwin.” stated Danson. “We believe this is another major step forward in executing our strategy to be a vertically integrated full-service provider in the reverse logistics segment of the consumer electronics industry.”

Kim Wagner, President and CEO of Tritronics, agreed that the synergies resulting from the acquisition would create a powerful market advantage. “Our family continues to be committed to the independent consumer electronics repair industry. Now, by joining forces with a dynamic and growing organization such as Encompass Group, we’ll be better positioned to offer a broader range of value-added services to our customers” said Wagner. “We are very excited about this milestone in the company’s long history.”

For the fiscal year ended April 30, 2008, Tritronics recorded sales revenue of approximately $21.8 million (unaudited).

EBRD secures minority stake in Russian transport group for $120 million

The FINANCIAL -- The European Bank for Reconstruction and Development has, through a private placement, acquired for $120 million an equity stake representing 3.8 percent of the ordinary shares of OJSC Far-Eastern Shipping Company (FESCO), Russia’s major integrated inter-modal freight transport company combining shipping, railways and port facilities.

The acquisition will give the EBRD a stake in the overhaul of the Russian transport market through FESCO’s innovative strategy of creating, as Russia’s third largest shipping company, a broad-based logistics operator providing a single service chain for its customers. The investment will give the Bank the right to have a representative on the Company’s Investment Committee.

Thanks to its spread of strategic transport assets stretching from the Baltic Sea to Vladivostok in the Russian Far East, FESCO is well placed to capitalise on Russia’s growing foreign trade and its booming volumes of transit shipments on Asia-Europe routes. The company is focusing on its container logistics segment, an area of potential high growth in view of the relatively low use of containers to date.

The EBRD welcomes FESCO’s commitment to improve the company’s corporate governance and environmental procedures and is pleased to become a shareholder of the company which is pioneering integrated inter-modal services in Russia , said Sue Barrett, the EBRD’s Director for Transport.

The EBRD’s acquisition of its stake follows an offering made by FESCO of new shares comprising 25 percent of the Company’s share capital. The new share issue raised $637 million.

Keith Taylor Logistics buys SCS Logistics

Keith Taylor Logistics (KTL) has acquired the assets of the SCS Group of Companies including SCS Logistics. A spokeswoman for KTL, which is part of the TG Group, says it does not want to make any comment on the acquisition.

However, a statement on the company website says: "TG Group has embarked on a joint venture with an American venture capital business to create a pan-European logistics business. "Keith Taylor Logistics is a full service logistics provider and is actively seeking to acquire logistics-related businesses located throughout the UK and Europe.

"We are particularly interested in businesses that are in administration but are available for purchase as a going concern." KTL specialises in warehousing, transport and distribution, road haulage and freight forwarding. The company has just moved into a new, fully operational 105,000ft2 warehouse at a secure site in Northampton.

C.H. Robinson Worldwide acquires Transera

MINNEAPOLIS—Non-asset based third party logistics (3PL) services provider C.H. Robinson Worldwide Inc. said today it has acquired certain operating subsidiaries of Transera International Holdings (Transera), a Calgary, Alberta-based freight forwarder.

Financial terms of the acquisition were not disclosed. Transera has 107 employees and annual gross revenues of approximately $125 million, according to a C.H. Robinson Worldwide statement. It was established in 1985 and is a non-asset based global project forwarder, providing North American and global transportation of over-dimensional and heavy-lift shipments, with customers in the oil, gas, mining, and wind power industries, the statement added.

C.H. Robinson Worldwide Vice President of International Forwarding Jeff Scovill told LM that the company has a growing number of customers requesting it to handle their project cargoes. This, he said, was a major driver in the company’s decision to acquired Transera.

“This is especially important in the global environment, with the movement of manufacturing facilities and continued expansion of C.H. Robinson into industries that are well aligned with over-dimensional cargoes,” said Scovill. “This acquisition adds substantial expertise to the organization for these cargoes and will allow us to expand our service offerings to clients requesting project related services.”

Scovill also commented that Transera’s brand recognition, a well aligned customer base with long-term relationships, employee expertise, and its strong history of growth and track record of success made them stand out amongst their competition, when C.H. Robinson was looking at potential acquisition targets.

From a shipper-service perspective, Scovill explained that this acquisition makes sense, because C.H. Robinson's growing customer base is requesting services of over-dimensional, overweight cargoes, and the company is receiving requests within the industry to provide services similar to what Transera already does.

“The addition of Transera to the C.H. Robinson network allows us to continue to more fully integrate into the supply chain with these accounts, providing a broader range of services,” he said. “In addition, it also opens up opportunities to provide a similar breadth of services to existing Transera accounts, adding value to their customer community.”

Two well-known industry experts said this deal makes sense from a strategic perspective for C.H. Robinson.

“This purchase is a logical add-on for CHR, which has been very successful expanding its Canadian & International operations,” said Richard Armstrong, president of Armstrong & Associates, a supply chain consultancy. “Adding project logistics is a natural expansion for [the company].”

And JP Morgan analyst Tom Wadewitz wrote in a research note that this acquisition is a strategic positive for C.H. Robinson, because it adds new capabilities and further broadens its footprint in the freight forwarding arena.