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C.H. Robinson's Acquisition Boosts Global Footprint

The wide-moat third-party logistics behemoth struck an agreement to acquire privately held air and ocean forwarder APC Logistics.

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C.H. Robinson Worldwide Inc
(CHRW)

Wide-moat third-party logistics behemoth

Further financial details were limited, but running potential APC performance numbers through our model, our initial take is that the cash flow impact should prove modestly accretive to shareholder value, and we expect to boost our $67 fair value estimate by roughly 3%; the shares are trading in fairly valued territory. In general, we have high confidence in Robinson’s best-in-class operational acumen, and previous deals in its global forwarding segment have met with success (including integration efforts), namely its 2012 acquisition of Phoenix International. We expect additional detail when the firm reports third-quarter results in late October.

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About the Author

Matthew Young

Senior Equity Analyst
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Matthew Young, CFA, is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers transportation and logistics firms.

Before joining Morningstar in 2010, Young spent five years as an equity research associate at William Blair, where he covered logistics and commercial-services firms.

Young holds a bachelor’s degree from Wheaton College and a master’s degree in business administration, with concentrations in finance and accounting, from the University of Chicago Booth School of Business. He also holds the Chartered Financial Analyst® designation.

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