C.H. Robinson Pauses Share Buybacks Before RXO Deal Closes

C.H. Robinson has paused share repurchases after agreeing to acquire RXO, bringing forward its planned pause in share repurchases as it manages debt for the $5.8 billion deal.

“Share repurchases have now been paused following our agreement to acquire RXO,” C.H. Robinson said. When it announced the acquisition Oct. 5, the company had planned to stop repurchases after closing and keep them suspended until it reached its leverage goal.

C.H. Robinson reiterated its expectation of about $300 million in net run-rate cost synergies within two years after closing. Potential sources include cost-to-serve efficiencies, operating improvements, shared-services savings and optimization of third-party spending. The figure is a future target, not savings already achieved.

By the end of 2028, C.H. Robinson is targeting net debt equal to 1.75 to 2.25 times adjusted EBITDA for the preceding 12 months. The target sets a debt measure for the period following the planned acquisition.

In the quarter ended Sept. 30, before the acquisition agreement was announced, C.H. Robinson repurchased $214.3 million in stock and paid $74.8 million in dividends. The quarter also brought an earnings beat as shares fell more than 10% in Wednesday trading.

C.H. Robinson announced a $5.8 billion stock-and-cash acquisition of RXO. The deal is expected to close in the first half of 2027, subject to regulatory and RXO shareholder approvals.