C.H. Robinson to acquire RXO for $5.8B implied value ($30.25/share, 29% premium)
What happened
C.H. Robinson Worldwide (CHRW) and RXO (RXO) announced a definitive stock-and-cash merger agreement on October 5 under which C.H. Robinson will acquire RXO for an implied value of $5.8 billion. RXO shareholders will receive $30.25 per share in total implied value — a 29% premium to RXO's October 2 close of $23.38 — in a mix of $17.25 cash plus 0.0856 CHRW shares per RXO share (about 57% cash, 43% stock). The combined company would have an enterprise value over $25 billion. Closing is expected in the first half of 2027. C.H. Robinson expects about $300 million of net run-rate cost synergies within two years by applying its AI operating model to RXO, with EPS accretion beginning within nine months and mid-teen-percentage EPS uplift by 2028. RXO shares jumped 21-22% premarket to ~$28.24-28.46, while C.H. Robinson fell 8-11% to ~$140-145 on the new debt financing, share issuance, and a pause in buybacks until target leverage is reached.
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Who’s affected
- C.H. Robinson (CHRW) — acquirer; new debt to fund the 57%-cash deal, share issuance, and a pause in buybacks; shares fell 8-11% premarket
- RXO (RXO) — target; $30.25/share implied value (29% premium to Oct. 2 close of $23.38); shares surged 21-22% premarket, on pace for largest one-day gain since June 2024
- Logistics sector peers (J.B. Hunt, Landstar, GXO, Hub Group) — repricing of consolidation premium across freight brokerage