Eden Prairie, Minn.—Dec. 2, 2014—C.H. Robinson announced that it reached an agreement to acquire Freightquote.com, Inc. for $365 million in cash. The agreement is subject to certain customary closing conditions, including regulatory approval. Closing of the acquisition is expected to occur in the first quarter of 2015. C.H. Robinson will likely increase its existing revolving credit facility to finance the acquisition.
Freightquote is a privately held freight broker providing services throughout North America. Freightquote’s calendar 2014 gross revenues are projected to be approximately $623 million, net revenues are projected to be approximately $124 million, and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) is projected to be approximately $34 million.
Founded in 1999 by Tim Barton, Freightquote is a large Internet-based freight broker in the United States. Headquartered in Kansas City, Mo. with approximately 1,000 employees, Freightquote provides truckload, less-than-truckload and intermodal services to approximately 80,000 customers.
“Freightquote is a quality, innovative, growth company that brings a proven model serving smaller businesses. Its proprietary e-commerce technology allows shippers to easily access competitive rates, and automated load acceptance and payment functionality. e-Commerce is going to be a bigger part of future supply chain services and Freightquote brings us a leading solution in our industry,” said John Wiehoff, C.H. Robinson chairman and chief executive officer.
“Along with their track record of success, Freightquote has an established brand, a talented management team, excellent people and a performance-based company culture.” Wiehoff continued, “Freightquote brings synergies to our less-than-truckload and truckload businesses, as well as a talented technology team with expertise developing a great e-commerce storefront experience.”
“With the addition of Freightquote, we will increase our market share with small businesses and significantly expand our presence in the Kansas City market,” said Scott Satterlee, C.H. Robinson senior vice president of North America Surface Transportation. “Freightquote will operate as one of our flagship operations in Kansas City and we plan to continue to aggressively grow the operations there.”
Tim Barton, executive chairman of Freightquote, will serve as a consultant to Freightquote following the closing of the acquisition.
Morgan Stanley & Co. LLC is serving as financial advisor to Freightquote.com, Inc.