Who is C.H. Robinson, and what is it going to do with Freightquote?

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C.H. Robinson Worldwide Inc.

CEO John Wiehoff leads third-part logistics company C.H. Robinson Worldwide Inc.

Austin Alonzo

Reporter- Kansas City Business Journal

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When its $365 million sale closes early next year, Freightquote will be the latest company founded and based in the Kansas City area to be bought by an out-of-town company.

The Kansas City-based freight broker, its brand, employees and new $45 million headquarters building in south Kansas City will become part of Eden Prairie, Minn., third-party logistics company C.H. Robinson Worldwide Inc. (Nasdaq: CHRW). Analysts who monitor the publicly traded Minneapolis-area company agreed that the move cements its position as a leader in the growing third-party logistics marketplace.

The basics on C.H. Robinson

C.H. Robinson, named for founder Charles Henry Robinson, was founded in 1905 in Grand Forks, N.D., as a produce brokerage firm. Since then, the company has grown outside moving produce, which it still does, and entered a position of leadership in the growing third-party logistics industry. The company's most rapid period of growth began in the 1980s after the trucking industry was deregulated.

The company has made big acquisitions in Europe, South America and Asia as well as the U.S. to diversify its services and expand its access to foreign markets. Most recently, the company bought Chicago-based Phoenix International Inc. for about $635 million in 2012.

C.H. Robinson reported revenue of $12.8 billion in 2013, and its market capitalization is $10.92 billion. The company employs more than 11,000 worldwide and has more than 46,000 customers globally.

What happens to Freightquote now?

In a conference call on the acquisition, C.H. Robinson executives said they expect to retain all of Freightquote's employees and operations in Kansas City. Freightquote founder Tim Barton told the Kansas City Business Journal that the company will be run as a subsidiary of C.H. Robinson. Barton will stay as a consultant. Freightquote CFO Matt Druten will become the subsidiary's president. Freightquote CEO Tyler Ellison has resigned, Barton said.

Austin reports about construction, transportation, engineering and architecture.