C.H. Robinson’s acquisition of The Space Group helps to boost its Global Forwarding group

Minneapolis, Minn.-based global logistics services provider and freight forwarder C.H. Robinson announced yesterday it has acquired Madrid, Spain-based international ocean and air freight forwarder The Space Group, in an effort designed to further expand its Global Forwarding business segment.

The acquisition is for roughly $48 million, according to C.H. Robinson officials.

Established in 1982, The Space Group provided customs brokerage and other logistics services, in addition to its international ocean and air freight forwarding services. The company has more than 2,500 customers, 170 employees, seven offices in Spain and one in Colombia. It had roughly $84 million in gross revenues for the fiscal year ending December 31, 2018.

“The acquisition of Space Cargo advances our strategy of expanding our presence globally,” said Bob Biesterfeld, Chief Operating Officer and CEO-elect of C.H. Robinson, in a statement. “We look forward to working with Space Cargo’s customers to offer our full suite of logistics services to enhance their supply chains. Space Cargo’s leadership, expertise and strong customer and carrier relationships, combined with C.H. Robinson’s global service offerings and network, will also create more robust capabilities for our customers and add scale to our business. We continue to look for ways to capitalize on the opportunity to grow globally, in part by acquiring leading local providers that share our commitment of best-in-class service and execution. This enables us to better support our customers of all sizes and enhance returns as we integrate these companies into our global business.”

The C.H. Robinson Global Forwarding segment, which The Space Group will be added to, does business on five continents and 32 countries, according to the company. It is comprised of more than 4,000 employees and 125 global offices, and serves as the top non-vessel operator from China to the United States. Along with being integrated into the C.H. Robinson Global Forwarding segment, The Space Group will also be integrated into Navisphere, its single global technology platform, which provides end-to-end visibility, consistent business processes, and strategy-driven business intelligence on a global basis. Navisphere is used by CHRW employees, customers, and service providers to manage transportation and sourcing activities globally.

“We are excited to join C.H. Robinson, the best third-party logistics provider, and build on the business we have done together for more than 10 years,” said Jordi Pellice, Chief Executive Officer of Space Cargo, in a statement. “We believe this partnership will position us to better serve our customers and promote continued growth by leveraging C.H. Robinson’s worldwide network and diverse service offerings.”

In a recent interview with LM, C.H. Robinson’s Biesterfeld offered up the company’s respective approaches to the global air and ocean forwarding markets.

“When we look at our ocean business as a forwarder, we are a much bigger player there than we are on the air side,” he said. “Our focus in ocean has been to continue to strengthen our TransPacific eastbound business, as we are the largest NVO in that lane and also into Australia. When we acquired Phoenix International in 2012, we really doubled the size of our overall global forwarding business and somewhat turned the keys over to the Phoenix leadership to continue to build on their model. In the ocean business we are continuing to build out density in our trade lanes and we will continue to look for ways to grow in that space both organically and through acquisition.

Describing the global air forwarding market, Biesterfeld took a quick look back to 2018, which he said was a really important year for C.H. Robinson in that space as it invested heavily into it.

“It is a complex market,” he explained. “You cannot just sit on a trade lane; you need to focus on gateways, assets, and people, and it continues to be a strong growth vehicle for us.”