Landmark acquisition unites two major US logistics networks, expanding multimodal transport capabilities and strengthening refrigerated services
One of the world’s largest logistics specialists, CH Robinson, has agreed to acquire RXO in a stock-and-cash transaction valued at US$5.8bn – a move that brings together two major US logistics networks to create a combined company worth more than US$25bn.
The deal will expand CH Robinson’s multimodal transport platform, combining the companies’ truck brokerage and managed transportation operations, CH Robinson’s global forwarding business, and RXO’s capabilities in expedited and last-mile logistics.
The deal is also expected to mean a larger refrigerated network and therefore possible further expansion in perishables, plus potentially stronger retail distribution, more AI-informed movement of goods, and greater buying power for the group as a broker on the international transport market.
In a statement, CH Robinson said the acquisition would create a larger and denser network and broaden the range of services available to customers across different transport modes and market segments.
The group said it planned to introduce its Lean AI operating model across RXO’s operations and expected to generate approximately US$300mn in net annual run-rate cost synergies within two years of completing the transaction.
‘Natural step’
Its president and chief executive officer Dave Bozeman said the transaction represented “a natural next step in our transformation”.
“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,” Bozeman said.
“By applying our proven Lean AI model to RXO’s business, we expect to significantly enhance productivity to unlock compelling cost synergies.”
RXO chairman and chief executive officer Drew Wilkerson said combining the companies’ complementary capabilities would enable the enlarged group to offer customers “greater scale, broader capabilities and even more value”.
“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,” Wilkerson said.
Adam Karr, president and portfolio manager at RXO’s largest shareholder Orbis Investments, said the investor fully supported the transaction.
“It gives RXO shareholders substantial cash today and continued ownership in a combined platform with significant upside,” he said.
