Key Takeaways
- C.H. Robinson will acquire RXO in a $5.8 billion transaction.
- The combined logistics company will have enterprise value above $25 billion.
- The transaction is expected to close during the first half of 2027.
C.H. Robinson has agreed to acquire freight broker RXO in a $5.8 billion stock and cash transaction, bringing together two logistics businesses with operations across freight transportation and supply chain services. The combination is expected to create a logistics company with an enterprise value of more than $25 billion.
Deal Combines Multimodal And Freight Brokerage Operations
The transaction will combine C.H. Robinson’s global multimodal platform with RXO’s North American brokerage operations. C.H. Robinson’s business includes truckload, less-than-truckload, and global forwarding services, while RXO operates across freight brokerage, expedited transportation, and last-mile services.
Following the transaction, C.H. Robinson plans to integrate RXO primarily into its North American Surface Transportation division. The company expects the combined operations to provide a larger platform across freight services in North America while retaining C.H. Robinson’s broader global transportation capabilities.
C.H. Robinson also plans to apply its Lean AI operating model to RXO’s business. The company expects the combined operations to generate approximately $300 million in net run rate cost synergies within two years after the deal closes.
The transaction is expected to become accretive to adjusted earnings per share within 9 months of closing. C.H. Robinson also expects the deal to become mid-teens accretive to adjusted EPS in 2028.
The agreement was unanimously approved by the boards of both companies. RXO’s largest shareholder, Orbis Investments, has also expressed support for the transaction. MFN Partners LP, which owns approximately 17% of RXO’s shares, has agreed to vote in favor of the deal.
Financing And Integration Plans
C.H. Robinson plans to finance the cash portion of the transaction through a fully underwritten bridge facility commitment from Morgan Stanley Senior Funding. The company said it will suspend share buybacks until its leverage returns to its target range following completion of the transaction.
The acquisition is expected to close in the first half of 2027, subject to regulatory approval and approval from RXO shareholders. Until completion, both companies will continue operating as separate businesses.
The transaction adds to consolidation activity across the global third-party logistics sector. Earlier this year, FedEx agreed to sell its FedEx Supply Chain subsidiary to French shipping company CMA CGM Group for an enterprise value of $1.4 billion. The business is expected to become part of CMA CGM’s CEVA Logistics unit.
For C.H. Robinson, the RXO acquisition will expand its presence in North American freight brokerage while adding RXO’s expedited and last-mile capabilities. The combined company will also bring together C.H. Robinson’s international forwarding and multimodal operations with RXO’s North American freight network.
The $5.8 billion transaction therefore represents a major expansion of C.H. Robinson’s logistics platform, with the companies targeting cost synergies, earnings growth, and greater operating scale following the expected 2027 completion.
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