January 30, 2020: C.H. Robinson is entering into a definitive agreement to acquire Roadrunner Transportation’s Prime Distribution Services— Prime. The agreement is subject to regulatory approval and certain customary closing conditions.
C.H. Robinson plans to purchase Prime for approximately $225 million in cash. 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. Prime had $108.7 million in total revenues for the fiscal year ended December 31, 2019.
“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,” said Bob Biesterfeld, C.H. Robinson Chief Executive Officer. “Prime has an outstanding track record of success, a talented and experienced team and a focus on delivering great value to its customers and carriers.”
Once the deal closes, C.H. Robinson intends on integrating Prime into its North American Surface Transportation division and single global, multimodal technology platform, Navisphere®.