Dive Brief:
- C.H. Robinson Worldwide is selling its European Surface Transportation business to Sennder Technologies GmbH of Germany, the company announced Tuesday.
- The move aligns with the company’s strategy to quickly improve profitability and focus on growing its core North American truckload, LTL, and global ocean and air businesses.
- Terms of the deal, which is expected to close in Q4, were not disclosed. Despite the divestment, President and CEO Dave Bozeman said the brokerage is committed to Europe, which “remains an important strategic market for us.”
Dive Insight:
The brokerage has focused on streamlining operations and seeking efficiencies by investing in technology, while shrinking its workforce amid a soft freight environment.
The company reported Q1 income from operations tumbled 21.1% year over year to $127.1 million, citing a prolonged freight recession as a contributor. Its headcount also contracted 11.3% to 14,990 from 16,902 a year ago.
C.H. Robinson’s announcement came a day ahead of its scheduled July 31 Q2 earnings release. The company said additional details on the sale will be discussed during its earnings call Wednesday.
For Sennder Technologies GmbH, the deal follows its September 2020 acquisition of Uber’s European freight business. The addition of C.H. Robinson’s European Surface Transportation business will create an entity with combined revenues of $1.4 billion euros ($1.5 billion), employing 1,700 people, the Germany-based freight forwarder said.
A spokesperson for Sennder Technologies GmbH said in an email to Trucking Dive that there will be no immediate organizational changes to C.H. Robinson’s European Surface Transportation business, as the deal still requires regulatory approval.
