In a move that may have been foreshadowed by strong upward stock movement Thursday and Friday, C.H. Robinson, the country’s biggest 3PL, is getting a lot bigger by acquiring RXO.
The transaction was announced Monday morning.
RXO’s (NYSE: RXO) stock price had risen sharply Thursday and Friday, with it rising Friday by $2.02, a gain of 9.46% to $23.38.
Under the terms of the deal, RXO shareholders will receive $17.25 per share in cash and 0.0856 shares of C.H. Robinson (NASDAQ: CHRW) for one share of RXO. According to the C.H. Robinson release on the transaction, given the closing C.H. Robinson price of $157.72 per share on Friday, that puts the value of each RXO share at $30.25 per share.
At approximately 7:20 a.m., after the deal was announced, C.H. Robinson’s shares in pre-market trading were down 4.89% to $150, a drop of $7.72, while RXO’s shares were up 21.86% to $28.49/share, a gain of $5.11.
“The acquisition of RXO brings together two complementary networks and diversifies and strengthens C.H. Robinson’s multi-modal platform to accelerate its growth and increase its penetration across all modes and segments,” C.H. Robinson said in the prepared statement announcing the deal. “Combining both companies’ robust trucking brokerage and managed transportation businesses, along with C.H. Robinson’s global forwarding and RXO’s strengths in expedited and last mile, will create a more comprehensive offering for customers across a larger and denser network.”
This is a developing story,
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