Yet another mega-merger in the 3PL space. But with all the headaches of putting together two large businesses, will more profits result? I doubt it. as the article below makes clear, CHR grew organically from within, whereas XPO is growing through mergers. As a veteran of some mergers, I think there are major operational and information (IT) obstacles that always need to be overcome, not to say differences in corporate culture.
According to Supply Chain 24/7’s correspondent, ‘in seeing how CH Robinson’s EBITDA translates to margins, and in realizing that XPO’s acquisition volume will likely slow in the years ahead, one could predict that XPO will perform very much like CH Robinson, and that questions surrounding profitability will soon be answered.’
Source: What CH Robinson Worldwide’s Profits Tell Us About XPO Logistics’ Future – Supply Chain 24/7
Source: XPO Logistics Said Near Deal to Buy Con-way for $3 Billion Cash – Supply Chain 24/7
Supply Chain and Logistics 