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C.H. Robinson Buys Space Cargo for $48M, Expands Portfolio
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In a bid to strengthen its Global Forwarding business, C.H. Robinson (CHRW - Free Report) acquired the Madrid, Spain-based freight forwarder — The Space Cargo Group — for approximately €42 million ($48 million). The acquisition is anticipated to be accretive to C.H. Robinson’s results in the current year.
C.H. Robinson will utilize its current cash balance to finance the buyout of this provider of ocean, air freight forwarding, customs brokerage and other logistics services. The Space Cargo Group, with seven offices in Spain and one in Columbia, has a customer base in excess of 2,500.
Notably, The Space Cargo Group products will be part of C.H. Robinson’s Global Forwarding unit. Currently, the unit boasts more than 4,000 employees and 125 global offices across five continents and 32 countries. In the fourth quarter of 2018, the Global Forwarding unit contributed 16.4% to C.H. Robinson’s top line, reflecting a 14.5% increase year over year.
We believe this latest buyout to favor C.H. Robinson as the field offers significant commercial potential. In fact, the global airfreight forwarding market is expected to exhibit a CAGR of approximately 4% during the 2018-2022 time frame.
Rapid e-commerce growth is the key catalyst behind the lucrativeness of the global airfreight forwarding market, which includes the likes of Expeditors International of Washington (EXPD - Free Report) apart from C.H. Robinson.
We note that this Zacks Rank #3 (Hold) company is active on the acquisition front. The Space Cargo buyout apart, other notable acquisitions by this Minnesota-based company include the purchase of Milgram & Company in 2018 and APC Logistics in 2016.
Both stocks boast an impressive earnings surprise history. Azul outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 97.9%. SkyWest exceeded the consensus mark in each of the trailing four quarters, with an average beat of 16.9%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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C.H. Robinson Buys Space Cargo for $48M, Expands Portfolio
In a bid to strengthen its Global Forwarding business, C.H. Robinson (CHRW - Free Report) acquired the Madrid, Spain-based freight forwarder — The Space Cargo Group — for approximately €42 million ($48 million). The acquisition is anticipated to be accretive to C.H. Robinson’s results in the current year.
C.H. Robinson will utilize its current cash balance to finance the buyout of this provider of ocean, air freight forwarding, customs brokerage and other logistics services. The Space Cargo Group, with seven offices in Spain and one in Columbia, has a customer base in excess of 2,500.
Notably, The Space Cargo Group products will be part of C.H. Robinson’s Global Forwarding unit. Currently, the unit boasts more than 4,000 employees and 125 global offices across five continents and 32 countries. In the fourth quarter of 2018, the Global Forwarding unit contributed 16.4% to C.H. Robinson’s top line, reflecting a 14.5% increase year over year.
We believe this latest buyout to favor C.H. Robinson as the field offers significant commercial potential. In fact, the global airfreight forwarding market is expected to exhibit a CAGR of approximately 4% during the 2018-2022 time frame.
Rapid e-commerce growth is the key catalyst behind the lucrativeness of the global airfreight forwarding market, which includes the likes of Expeditors International of Washington (EXPD - Free Report) apart from C.H. Robinson.
We note that this Zacks Rank #3 (Hold) company is active on the acquisition front. The Space Cargo buyout apart, other notable acquisitions by this Minnesota-based company include the purchase of Milgram & Company in 2018 and APC Logistics in 2016.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Azul S.A. (AZUL - Free Report) and SkyWest (SKYW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both stocks boast an impressive earnings surprise history. Azul outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 97.9%. SkyWest exceeded the consensus mark in each of the trailing four quarters, with an average beat of 16.9%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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