XPO Logistics Inc plans to spin off XPO’s transportation and logistics businesses into two separate companies: XPO’s North American and European less-than-truckload (LTL) and truckload brokerage business. This is according the founder, chairman and CEO of the company and his board of directors. For now, it will be called XPORemainCo.
The new company consists of XPO’s North American and European logistics units, called NewCo. Therefore, the permanent names for each company will be chosing at a later date. This is according to an XPO spokesman.
XPO RemainCo Personal Information
Jacobs will be chairman and CEO of XPORemain and will stay chairman of the NewCo board. XPO President Troy Cooper will serve as XPORemain’s president. The existing leaders of the logistics businesses on both continents will continue to serve in “senior positions” with NewCo, XPO said in a statement late last Wednesday. The company did not specify any of those leaders. In addition, to what roles they will play should the spin-off occur. Therefore, Ashfaque Chowdury runs the company’s North American and Asian logistics businesses. However, Richard Cawston will head up those operations in Europe.
Transaction, Deal To Come
During the second half of next year, the transaction will be finished. There is no assurance that a separation will occur, the company cautioned. Each company will trade independently on the New York Stock Exchange if the deal is completing.
We intend to create two high-performing, pure-play companies to serve the best interests of our shareholders. This will be done by undoing its transportation and logistics segments. Jacobs said in the statement.
Powerhouse Contract Logistics Provider
The new logistics company is going to become the world’s second-largest contract logistics provider. XPO said. Moreover, combining Deutsche Post DHL’s DHL Supply Chain and DHL Global Forwarding into the largest, this is according to data from research and consulting firm Armstrong & Associates, Inc.
The transport segment posted revenue of $2.68 billion in the third quarter. This is while the logistics segment is reporting a revenue of $1.58 billion.