XPO Logistics Announces Exploration of Strategic Alternatives for One or More Business Units to Further Enhance Shareholder Value
January 16, 2020 at 03:40 am IST
Share
XPO Logistics, Inc. (NYSE:XPO) announced that its board of directors has authorized a review of strategic alternatives, including the possible sale or spin-off of one or more of XPO’s business units. Bradley Jacobs, Chairman and Chief Executive Officer of XPO Logistics, said, “XPO is the 7th best-performing stock of the last decade on the Fortune 500, based on Bloomberg market data. The share price has increased more than ten-fold since our investment in 2011. Still, we continue to trade at well below the sum of our parts and at a significant discount to our pure-play peers. That’s why we believe the best way to continue to maximize shareholder value is to explore our options, while remaining intensely committed to the satisfaction of our customers and employees.” In making the announcement, XPO noted that there can be no assurance of any specific outcome. The company has not set a timetable for completion of the review process and has not determined which, if any, business units would be sold or spun off. However, the company does not intend to sell or spin off its North American less-than-truckload unit. XPO has retained Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as its financial advisors and Wachtell, Lipton, Rosen & Katz as its legal advisor to assist with the review process.
XPO, Inc. is a provider of freight transportation services. The Company moves goods through its customers supply chains in North America and Europe. It operates through two segments: North American Less-Than-Truckload (LTL), and European Transportation. The North American LTL segment provides shippers with geographic density and day-definite domestic and cross-border services to the United States (U.S.), as well as Mexico, Canada, and the Caribbean. It also includes trailer manufacturing operations. The European Transportation segment offers a range of services, such as truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, including road-rail and road-short sea combinations. It serves a base of customers in consumer, trade, and industrial markets. The Company offers XPO Connect, a cloud-based digital platform for transportation procurement that encompasses a freight optimizer system, shipper interface and carrier interface.