Sennder, a German freight forwarding company, has announced its acquisition of the European ground transportation assets of logistics giant C.H. Robinson. This all-cash deal is estimated to be similar in value to Sennder’s acquisition of Uber’s European freight business in 2020, which was around €900 million at the time.
C.H. Robinson is currently the second-largest logistics provider globally, with a market cap of over $10 billion. The acquisition of its assets is expected to double Sennder’s annual revenue to €1.4 billion, making it one of the top-five companies in Europe’s “full truck load” services sector. The combined business will have 1,700 employees across 20 markets.
This isn’t the first time that Sennder has taken a scoop out of C.H. Robinson’s business. Earlier this year, it hired Kollen Glynn, the head of engineering at C.H. Robinson, as its new Chief Technology Officer. Sennder has also made other acquisitions, including the purchase of Cars&Cargo in the Netherlands.
These acquisitions come at a time when e-commerce and the wider technology market are experiencing significant growth. The COVID-19 pandemic has shifted consumer behavior, with more people working from home and relying on online shopping. This has led to increased demand for freight services, resulting in successful fundraises for Sennder and a valuation of over $1 billion.
Despite the current leaner conditions in the tech industry, Sennder’s latest acquisition highlights the ongoing consolidation trend. Companies with available resources are acquiring assets to achieve economies of scale, while others are downsizing to reduce operational costs. This strategic move by Sennder demonstrates its commitment to expanding its footprint and enhancing its capabilities in the European market.
The deal is expected to close in the fourth quarter of 2024, pending regulatory approval. Sennder is also considering additional fundraising options to support its growth plans.
David Nothacker, CEO of Sennder, expressed his excitement about the acquisition and the potential for growth and operational scale. He emphasized the alignment between C.H. Robinson’s vision and Sennder’s mission to create an efficient and sustainable road freight network in Europe. The acquisition will enhance Sennder’s talent pool, expand its European presence, and improve its network density and digital capabilities for the benefit of carriers, shippers, and the industry as a whole.
In conclusion, Sennder’s acquisition of C.H. Robinson’s European ground transportation assets marks a significant milestone for the German freight forwarding company. This strategic move positions Sennder for further growth and solidifies its position in the European market. With its expanded capabilities and resources, Sennder is well-equipped to meet the evolving demands of the freight industry and drive innovation in the road freight network.