C.H. Robinson Buys RXO for $5.8 Billion

C.H. Robinson Worldwide Inc. announced its definitive agreement to acquire RXO Inc. for $5.8 billion, a move that significantly reshapes the logistics landscape.

RXO stockholders are to receive $17.25 in cash and 0.0856 shares of C.H. Robinson common stock per RXO share. This offer represents a total consideration of $30.25 per share, a 29% premium over Friday's closing price and a 27% premium to RXO's 90-day average.

The merged entity, expected to close in the first half of 2027 pending regulatory and stockholder approvals, will boast an enterprise value exceeding $25 billion. C.H. Robinson anticipates achieving $300 million in net run-rate cost synergies within two years of closing.

This strategic combination aims to integrate C.H. Robinson's global forwarding capabilities with RXO's robust North American brokerage, expedited, and last-mile services. The deal is expected to be accretive to adjusted earnings per share within nine months post-closing.

C.H. Robinson plans to finance the cash portion through new debt, having secured a fully underwritten bridge facility. The company is committed to reducing leverage to its target range of 1.75x-2.25x net debt to adjusted EBITDA by the end of 2028, during which time share repurchases will be suspended.

MFN Partners LP, a major RXO shareholder, has already agreed to vote in favor of the transaction, which received unanimous board approval from both companies.