C.H. Robinson expands network with acquisition of Spanish Space Cargo Group

Yesterday, U.S.-based forwarder C.H. Robinson inked an agreement for the purchase of The Space Cargo Group, based in Spain, for US$48 million in a move that will further expand its international network, especially in Spain and Latin America.

Like C.H. Robinson, Space Cargo Group provides ocean and airfreight forwarding, customs brokerage and other logistics services. Its offices in Madrid, Bogota and Hong Kong will serve to bolster C.H.’s network in these regions. The two companies have a 10-year relationship that predates the acquisition, which will go into full effect later this year.

“We continue to look for ways to capitalize on the opportunity to grow globally, in part by acquiring leading local providers,” Bob Biesterfeld, chief operating officer and CEO-elect of C.H. Robinson, said. With an abundance of forwarders in the logistics space, an increasing number of 3PLs are looking to consolidation as the next frontier for growth – most notably, with DSV’s recent bid to acquire Swiss forwarding giant Panalpina. Regarding plans to pursue M&A even as the logistics market has cooled off over the past few months, DSV’s CEO, Jens Bjørn Andersen, said during the company’s earnings call, “We are of the very clear understanding that in this extremely fragmented industry, where the biggest players have only a fraction of the market, consolidation makes a lot of sense.”

Investments in the trans-Atlantic hub of Madrid have also been a trend in logistics news this week. DHL Express and IAG Cargo each announced new facilities at Madrid-Barajas Airport (MAD) – perhaps indicating an increase in demand for airfreight capacity for perishable cargo like produce and pharmaceuticals between Europe and Latin America.