German freight-shipping unicorn Zehnder is on a roll. The company announced today that it is acquiring logistics giant C.H. Robinson’s European ground transportation assets in an all-cash deal. Terms of the deal were not disclosed, but a source close to the company said the purchase price is similar to what Zehnder paid for Uber’s European freight business in 2020.
The deal was an all-stock transaction and was rumored to be worth around €900 million at the time.
C.H. Robinson is estimated to be the second largest logistics company in the world after Amazon, with a market capitalization currently exceeding $10 billion. The acquisition is expected to double Sender’s annual revenue to €1.4 billion (i.e., its current revenue is €700 million plus €700 million from the acquired business). The combined business will have 1,700 employees across 20 markets, putting Sender in the top five providers of so-called “full truckload” services in Europe.
Notably, this is Sendder’s second scoop from a CH Robinson business, after the company poached the company’s engineering giant head Kollen Glynn as its new CTO in May.
Sennder has also made other acquisitions to expand its vehicle fleet and overall footprint. In 2021, it also bought Dutch company Cars&Cargo, also for an undisclosed price.
These two acquisitions came at a time when the e-commerce and technology markets as a whole were at their peak. The COVID-19 pandemic led consumers to work from home and stay online more, and to buy goods and services with clicks that they would normally have had to buy in person. This combined to lead to Sender raising two rounds of funding in quick succession: $160 million in January 2021 and another $80 million in June 2021, bringing its valuation to over $1 billion.
Many technology sectors, including e-commerce, are currently operating under tougher conditions, which makes Sennder’s latest acquisition all the more interesting. It highlights a larger consolidation movement we’ve been tracking across multiple sectors, with companies with spare cash (or coveted equity) snapping up assets to gain greater economies of scale, while others are downsizing (and selling assets) to reduce operational costs while focusing on their core competencies.
The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approval. Raising further capital is one of the “strategic options” Sennder is considering.
“This acquisition will be pivotal in advancing sender’s roadmap. With its vision to accelerate global trade to deliver the products and goods that drive the global economy, CH Robinson is highly aligned with sender’s mission and values of building an efficient and sustainable European ground freight network,” said David Nothacker, CEO of sender, in a statement. “We are deeply impressed with CH Robinson’s European ground transportation team and believe that combining our businesses and enhanced talent pool will enable us to achieve significant growth and operational scale, accelerate our expansion in Europe, and increase our network density and digital capabilities to benefit carriers, shippers and the industry as a whole. We are excited to welcome the EST team and embark on the next chapter of sender’s journey.”
