C.H. Robinson to acquire RXO in $5.8bn deal
The acquisition will expand C.H. Robinson’s multimodal logistics network, strengthen its operations, and is expected to generate $300 million in annual cost synergies within two years.
C.H. Robinson Worldwide has agreed to acquire transportation solutions provider RXO in a stock-and-cash transaction valued at approximately $5.8 billion, creating a combined company with an enterprise value exceeding $25 billion.
The deal will bring together the companies’ complementary transportation networks, strengthening C.H. Robinson’s multimodal platform and expanding its presence across freight segments. The combined business will integrate the company's global forwarding and trucking brokerage operations with RXO’s strengths in expedited and last-mile transportation, as well as managed transportation services.
C.H. Robinson expects to generate around $300 million in net run-rate cost synergies within two years of closing by applying its Lean AI operating model across RXO’s operations. The companies said the productivity gains are expected to support profitable growth, stronger operating leverage and improved margins across different freight market conditions.
Dave Bozeman, C.H. Robinson President and Chief Executive Officer, said, “This transaction is a natural next step in our transformation, allowing us to create a more scaled, resilient North American third-party logistics provider positioned to offer exceptional. Like Robinson, RXO is a customer-focused company with expertise and talent that will allow us to expand our capabilities to better support customers of all sizes on their most complex challenges. By applying our proven Lean AI model to RXO’s business, we expect to significantly enhance productivity to unlock compelling cost synergies. We are confident our experienced team and disciplined execution plan will allow us to seamlessly integrate our organisations and position the combined company to capture the expected synergies, drive innovation, and deepen customer relationships to enhance profitable growth and shareholder value.”
Drew Wilkerson, RXO Chairman and Chief Executive Officer, said, “Joining C.H. Robinson represents an exciting next chapter for our company, our employees and our customers. We have built a strong business by staying relentlessly focused on our customers, operating with agility and delivering solutions that help them navigate an increasingly complex supply chain. 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. I’m incredibly proud of what our team has built and excited about the opportunities ahead as part of C.H. Robinson.”
Adam R. Karr, President and Portfolio Manager at Orbis Investments, said, “Orbis is RXO’s largest shareholder and has owned the Company since it became independent. We know the business and the team well, and we fully support this transaction. It gives RXO shareholders substantial cash today and continued ownership in a combined platform with significant upside.”
The acquisition is expected to generate around $300 million in net run-rate cost synergies within two years, driven by C.H. Robinson’s Lean AI operating model, operational efficiencies, shared services and lower third-party spending. The deal will also expand C.H. Robinson’s proprietary datasets, strengthening its AI-driven sales, procurement and freight-matching capabilities.
The combination will increase network density and scale in the fragmented transportation market, while expanding C.H. Robinson’s offering across global forwarding, North American brokerage, expedited and last-mile services. This is expected to create cross-selling opportunities and deepen customer relationships.
Financially, the transaction is expected to be adjusted EPS accretive within nine months of closing and mid-teens accretive by 2028. Higher cash generation is also expected to support deleveraging, with C.H. Robinson targeting net leverage of 1.75x–2.25x adjusted EBITDA by end-2028.
Under the merger agreement, RXO shareholders will receive $17.25 in cash and 0.0856 C.H. Robinson shares per RXO share, representing total implied consideration of $30.25 per share. The offer represents a 27% premium to RXO’s 90-day volume-weighted average price and a 29% premium to its October 2 closing price.
