Freight forwarding firm C.H. Robinson Worldwide said on Monday it would buy RXO in a stock-and-cash transaction for $5.8 billion, as it looks to strengthen its footprint in North America’s truck brokerage business.
The $25 billion combined logistics firm will fold the tech-enabled truck brokerage primarily into C.H. Robinson’s North American Surface Transportation unit, which accounts for over two-thirds of revenue.
RXO, which also offers managed transportation and last-mile delivery, saw its shares jump about 20 per cent, while C.H. Robinson sank almost 12 per cent in premarket trading.
RXO shareholders would receive $17.25 in cash and 0.0856 C.H. Robinson shares for each RXO share, valuing the company at $30.25 per share, a 29 per cent premium to Friday’s close.
The deal would expand C.H. Robinson’s last-mile delivery coverage in the US and help it win more large corporate customers, strengthening its position in the highly competitive truck brokerage market.
C.H. Robinson CEO Dave Bozeman said the deal would allow the company “to create a more scaled, resilient North American third-party logistics provider.”
Upon deal closure, C.H. Robinson expects $300 million of net run-rate cost synergies within two years and expects the deal to be accretive to adjusted earnings per share within nine months.
The deal, expected to close in the first half of 2027, will give RXO shareholders ownership of 11 per cent of the combined company.
Morgan Stanley & Co. LLC acted as financial advisor to C.H. Robinson, while Goldman Sachs & Co. LLC served as financial advisor to RXO.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Vijay Kishore)
