GREENWICH, Conn. — XPO Logistics Inc., a worldwide freight transport, truck brokerage and logistics company, announced this week that the company will split its logistics and freight transportation segments into two independent companies. The announcement came after XPO’s board of directors unanimously approved a plan to spin off the logistics segment as a separate, publicly traded company.
“By uncoupling our transportation and logistics segments, we intend to create two high-performing, pure-play companies to serve the best interests of all our stakeholders,” said Brad Jacobs, chairman and chief executive officer of XPO. “Both businesses will have greater flexibility to tailor strategic decision-making and capital allocations to their end-markets, with the benefit of strong positioning as customer-focused innovators. We currently believe that this spin-off is the most effective way to unlock significant value for our customers, employees and shareholders.”
The two companies, as yet unnamed, have been dubbed “XPORemainCo” and “NewCo.”
XPORemainCo will offer freight transportation services, primarily less-than-truckload, along with non-asset truck brokerage, and NewCo will offer contract logistics with approximately 200 million square feet of warehouse space.
Jacobs is expected to continue to serve as chairman and CEO of XPORemainCo and become chairman of the NewCo board. Troy Cooper will continue to serve as XPORemainCo’s president, and the executives currently leading XPO’s global logistics segment will continue to serve in senior positions with NewCo.
If all goes according to plan, the transaction is expected to be complete in the second half of 2021. XPO has retained Goldman Sachs & Co. LLC as its financial advisor and Wachtell, Lipton, Rosen & Katz as its legal advisor to assist with the spin-off process.
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