C.H. Robinson Acquires Domestic Freight Forwarding Company.MINNEAPOLIS--(BUSINESS WIRE)--June 21, 1999-- C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (Nasdaq:CHRW CHRW C.H. Robinson Worldwide (stock symbol) ) announced today that it has signed an Asset Purchase Agreement with Country Wide Transport Services, Inc.("Country Wide") (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CWTV CWTV Child Witness to Violence Program ) for the purpose of acquiring substantially all of the operating assets Operating Assets Another term for working capital. , as well as certain liabilities, of Country Wide's operating subsidiary Vertex Transportation Inc. ("Vertex"). Vertex is a freight forwarder An individual who, as a regular business, assembles and combines small shipments into one lot and takes the responsibility for the transportation of such property from the place of receipt to the place of destination. based in East Rochester, New York East Rochester is a town and village located southeast of the City of Rochester in Monroe County, New York. The village, home to about 6,700 people, is bounded by Pittsford to the west and south and Perinton to the north and east. . Vertex provides third-party transportation logistics services throughout the United States, Canada and Mexico from its offices in East Rochester. Vertex had gross revenues of approximately $34 million in fiscal 1998. The acquisition is expected to close by the end of July 1999; C.H. Robinson will pay between $6.5 and $7.0 million above the net book value of the assets being acquired and liabilities assumed. "Vertex has a strong presence in the upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. market and has cultivated solid customer relationships," said D.R. "Sid" Verdoorn, chairman and chief executive officer of C.H. Robinson. "We have been interested in strengthening our already strong position in that region, and acquiring the assets of Vertex is part of that strategy." Vertex was founded in 1978 by Timothy Lepper, now president and chief executive officer of Country Wide Transport Services, and Wayne N. Parry, currently president of Vertex. Both will join C.H. Robinson as managers of the C.H. Robinson Rochester branch office. "We are very excited to join the ranks of a world-class operation such as C.H. Robinson," said Lepper. "Robinson has an operating philosophy of granting branch offices substantial autonomy in finding and implementing transportation and logistics solutions for its customers within the framework of a worldwide corporate presence. This will enable Vertex and its management team, which will stay intact, to offer customers an expanded menu of services supported by solid information systems." Founded in 1905, C.H. Robinson Worldwide, Inc., has gross revenues of $2 billion and is a global provider of multimodal Two or more modes of operation. The term is used to refer to a myriad of functions and conditions in which two or more different methods, processes or forms of delivery are used. On the Web, it refers to asking for something one way and receiving the answer another; for example requesting transportation services, logistics solutions and fresh produce sourcing, operating through a network of 129 offices in the United States, Canada, Mexico, Europe, South America and Africa. In North America, C.H. Robinson is one of the largest third-party logistics companies and maintains the single largest network of motor carrier capacity through contracts with more than 17,000 motor carriers. The company is one of the largest third-party providers of intermodal services in the United States. C.H. Robinson Worldwide, Inc., headquarters is in Eden Prairie, Minn. For more information about C.H. Robinson Worldwide, visit www.chrobinson.com. Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties including, but not limited to such factors as market demand, pricing, risks associated with operations outside of the U.S., changing economic conditions, the effect of the company's accounting policies, and other risk factors detailed under "Cautionary Statement" in Exhibit 99 to C.H. Robinson's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on March 26, 1999. |
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