Back to top

Analyst Blog

Zacks Equity Research

C.H. Robinson Closes APC Logistics Buyout, Expands Base


Trades from $3

C.H. Robinson Worldwide Inc. (CHRW - Analyst Report) recently announced that it has completed the acquisition of APC Logistics. The acquired company is one of the top providers of freight forwarding and customer brokerage services in Australia and New Zealand. The company serves more than 3000 suppliers and customers in these regions.

C.H. Robinson will be setting up a new region to the its Global Forwarding division called Oceania which will include APC Logistics. The company shall also onboard APC Logistics to its global technology platform, Navisphere. The deal has been valued at AUD 300 million. The acquisition, related fees and expenses were funded with cash and funds drawn from the acquirer’s current revolving credit facility. C.H. Robinson believes that the transaction will be modestly accretive to its earnings.

Benefits of the Acquisition

The deal is expected to benefit both the acquirer and the acquired company.  The buyout has helped C.H. Robinson to expand its global operations as well as add more capabilities and expertise to its services. The company expects to gain from APC Logistics’ commendable customer and carrier relationships in the region.

Zacks Rank and Stocks to Consider

C.H. Robinson currently carries a Zacks Ranks #3 (Hold). A better-ranked stock in the transportation services sector includesGreen Plains Partners LP (GPP - Snapshot Report) which saw earning estimate improving by 2 cents over the past 60 days with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Green Plains Partners provides ethanol and fuel storage, terminal and transportation services and is based out of Omaha, Nebraska.

Investors can also consider other stocks in the broad transportation sector such as Mexican airport operatorGrupo Aeroportuario del Sureste, SAB de CV (ASR - Snapshot Report) which saw earnings estimates being increased by 1 cent over the past 60 days and low cost U.S. airline JetBlue Airways Corp. (JBLU - Analyst Report) which also saw earnings estimate being increased by 1 cent over the past week. Both stocks carry a Zacks Rank #2 (Buy).

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>