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Diving Summary:
CH Robinson Worldwide Inc. said Tuesday it is selling its European surface transportation business to Germany’s Cinder Technologies GmbH. The move is in line with the company’s strategy to rapidly improve profitability and focus on growing its core North American fuel-carrying trucking business and global ocean and air freight businesses. Terms of the deal, which is expected to close in the fourth quarter, were not disclosed. Despite the sale, Chief Executive Dave Bozeman said the company is committed to Europe, which “remains an important strategic market for us.”
Insight into diving:
The brokerage has focused on streamlining operations and seeking efficiencies through investment in technology, while reducing its workforce amid a weak shipping environment.
The company reported a 21.1% year-over-year decline in operating income in the first quarter to $127.1 million, citing a prolonged slump in shipping as a contributor. Its headcount also shrank 11.3% to 14,990 from 16,902 a year earlier.
CH Robinson’s announcement came a day before its second-quarter earnings release scheduled for July 31. The company said additional details on the sale will be discussed during an earnings call on Wednesday.
For Sennder Technologies GmbH, the deal follows its acquisition of Uber’s European freight business in September 2020. The Germany-based freight company said the addition of CH Robinson’s European surface transportation business would create an entity with total revenues of €1.4 billion ($1.5 billion) and employing 1,700 people.
There will be no immediate regulatory changes to CH Robinson’s European surface transportation business, as the deal still requires regulatory approval, a Sennder Technologies GmbH spokesperson told Trucking Dive in an email.
