US giant expands European network
US logistics giant CH Robinson has expanded its European network with an acquisition in Germany. The company has purchased a small Hamburg-based forwarding operation, Frank M. Viet GmbH Internationale Spedition which provides non-asset based logistics services to 400 clients. It has a turnover of about €5m.
Before the purchase CH Robinson was present in the UK, Belgium, France, Spain, Poland and Hungary with a total of 15 branch offices. The acquisition fills an obvious gap in its European network in the region’s single largest economy. The move is part of a development strategy which involves selectively adding to its global freight forwarding operations and increasing the strength of its European operations. Its most notable purchase in Europe prior to Viet was French forwarding company, Nominter SA in 1999.
Although the new acquisition is small, the size of CH Robinson (about €3bn gross revenue) and the company’s stated intention to build its operations throughout Europe makes the move of significance. Presently €126m of revenue is generated presently outside of the USA but this figure is set to grow substantially over the coming years. The global presence is essential for the company looking to service many of its US multi-national clients abroad.
