C.H. Robinson Worldwide exited the freight payment services business by selling its T-Chek subsidiary for $302.5 million in cash to Electronic Funds Source.
The sale helps hone C.H. Robinson’s logistics, forwarding and brokerage portfolio as it expands overseas and gives EFS a profitable freight-payment business.
C.H. Robinson in early October acquired freight forwarder Phoenix International for $635 million, increasing the $10.3 billion company’s international reach.
In September, C.H. Robinson acquired Apreo Logistics, a $100 million international freight forwarder based in Warsaw, Poland.
The growth strategy is gaining support on Wall Street. The Bank of America Merrill Lynch raised its position on C.H. Robinson stock from “neutral” to “buy” Oct. 17.
Wall Street analysts expect the Minneapolis-based logistics company’s third-quarter earnings, to be released Oct. 23, to be 4.3 percent higher year-over-year.
T-Chek, a part of C.H. Robinson since 1984, provides freight payment services to truckload, less-than-truckload and private carriers and truck stop chains.
The division has been expanding into financial services, including funds transfer and expense management, for a broader range of industries, said C.H. Robinson.
In the 12 months that ended Sept. 30, T-Chek had about $52 million in operating revenue, about 4 percent of C.H. Robinson’s total revenue, the company said.
The division’s operating profit was approximately $26 million, according to C.H. Robinson. T-Chek employed about 190 people, primarily in Minnesota.
The acquisition will expand payment services for EFS, which works with transportation customers such as Knight Transportation and TransAm Trucking.
The company will serve C.H. Robinson as well, providing the third-party logistics company with employee expense cards and funds transfer services.