There has been a further outbreak of restructuring from an American road freight brokerage as C.H. Robinson has agreed to sell its European road freight forwarding business to Berlin-based sennder Technologies. In a statement issued on Tuesday, July 30, 2024, the two companies said that they had agreed to “the acquisition of the European Surface Transportation (EST) operations of global logistics provider C.H. Robinson” by sennder Technologies.
Although the price of the purchase was not disclosed, the press release around Tuesday’s deal said that the purchase of the C.H.Robinson assets would make sennder “a Top 5 Full Truck Load (FTL) player in Europe , with a combined revenue of €1.4bn and a 1,700 people strong team, and a European footprint that stretches more than 20 locations”. According to details released by sennder during its most recent funding round, the company is valued at “in excess of $1bn”.
The purchase from C.H. Robinson is the latest in a line of acquisitions by sennder, with the German company having bought Uber Freight in Europe and Cars&Cargo over the past four years. The company says that it is “targeting additional acquisitions of local road freight companies to enhance the truck supply and increase network density”.
The position of C.H. Robinson is somewhat different, with the present management striving to improve the company’s performance by focusing on core US freight brokerage and global forwarding operations. As C.H. Robinson’s CEO and president, Dave Bozeman commented, “We need to focus on what sets us apart and build upon our competitive advantages”.
So far sennder Technologies has proven to have a successful business model. A few years ago it seemed that US providers were set to enter the forwarding markets of Europe, however several of these entrants stumbled as sennder has expanded rapidly. sennder asserts that it is aiming to rival incumbents such as Schenker or DHL. This suggests further acquisitions. However, the real test will come in converting acquisition-assisted revenue into profits in European road freight markets which can often be tough.
Author: Thomas Cullen
Source: Ti Insight
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