XPO to Split Logistics, Trucking Into Separate Companies
- Freight hauler seeks to sharpen focus, simplify business model
- Spinoff decision follows consideration of strategic options
XPO Chairman and Chief Executive Officer Brad Jacobs.
Photographer: Christopher Goodney/BloombergThis article is for subscribers only.
XPO Logistics Inc. is cleaving its trucking and logistics businesses into separate publicly traded companies, almost a year after saying it was looking for strategic alternatives.
The spinoff will occur as a tax-free transaction to shareholders, the Greenwich, Connecticut-based company said in a statement Wednesday. One company will focus on less-than-truckload hauling and transportation brokerage services, with current XPO Chairman and Chief Executive Officer Brad Jacobs remaining in those positions. The other operation will be the world’s second-largest contract logistics company, according to the statement.