C.H. Robinson has entered into a definitive agreement to acquire RXO in a stock-and-cash transaction valued at approximately US$5.8 billion, bringing together two major players in the North American third-party logistics market.
The transaction would create a combined company with an enterprise value of more than US$25 billion. It will combine C.H. Robinson’s global multimodal network with RXO’s North American brokerage, expedited transportation and last-mile capabilities.
Deal to expand C.H. Robinson logistics network
C.H. Robinson said the acquisition will increase the density of its logistics network and broaden its offering across transportation modes.
The combination will bring together the companies’ trucking brokerage and managed transportation operations. It will also combine C.H. Robinson’s global forwarding capabilities with RXO’s expedited and last-mile businesses.
“This transaction is a natural next step in our transformation, allowing us to create a more scaled, resilient North American third-party logistics provider,” said Dave Bozeman, President and Chief Executive Officer, C.H. Robinson.
Following completion, RXO will primarily be integrated into C.H. Robinson’s North American Surface Transportation (NAST) division.
C.H. Robinson expects to generate approximately US$300 million in annual run-rate cost synergies within two years after the transaction closes. The company plans to apply its Lean AI operating model across RXO’s business to improve productivity and operating efficiency.
Transaction expected to close in 2027
Under the agreement, RXO shareholders will receive an implied total consideration of US$30.25 per share. The transaction will be funded through a combination of cash and C.H. Robinson shares.
RXO shareholders are expected to own approximately 11% of the combined company after closing.
“By bringing together our complementary capabilities, talented teams and shared commitment to service, we will be able to offer customers greater scale, broader capabilities and even more value,” said Drew Wilkerson, Chairman and Chief Executive Officer, RXO.
The boards of both companies have unanimously approved the merger agreement.
The transaction is expected to close during the first half of 2027. However, it remains subject to regulatory clearance, RXO shareholder approval and other customary closing conditions. Until completion, C.H. Robinson and RXO will continue to operate as separate companies.
