• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » XPO Logistics Explores Breakup of Transportation Company

XPO Logistics Explores Breakup of Transportation Company

XPO Logistics Explores Breakup Of Transportation Company
Source: XPO Logistics
January 16, 2020
Bloomberg

XPO Logistics Inc., the transportation conglomerate run by serial dealmaker Brad Jacobs, is considering strategic options including the possible sale or spinoff of one or more business units.

The Greenwich, Connecticut-based company has retained Goldman Sachs Group Inc. and JPMorgan Chase & Co. for the review, according to a statement Wednesday, confirming a report in Bloomberg News. While XPO hasn’t determined which businesses it may divest, it plans to keep its less-than-truckload business, which handles relatively small freight, it said.

“XPO is the seventh best-performing stock of the last decade on the Fortune 500,” Jacobs said in a statement. “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.”

According to people familiar with the matter, the businesses XPO may exit are: its European supply chain; European transportation; North American transportation; and supply chain operations in North America and the Asia-Pacific regions.

XPO, with a market value of about $7.6 billion, rose as much as 17% in late trading Wednesday.

The transportation and logistics sector has been consolidating for years because it’s highly fragmented and companies in the space can benefit from scale. There were $47 billion in transportation deals announced in North America in 2019, an increase of about 47% from a year earlier, according to data compiled by Bloomberg.

XPO itself is a rollup. It has announced 19 deals worth $7.5 billion since Jacobs took over the company in 2011, when it was called Express-1 Expedited Solutions. Its shares have gained 584% since Jacobs took the reins.

In the past two years, Jacobs slowed its acquisition spree to focus on stock buybacks, citing the high prices of potential takeover targets.

XPO is the world’s second-largest freight brokerage provider, or liaison that helps companies arrange the movement of goods, according to its annual report. In North America, it is the largest provider of so-called last mile logistics for heavy goods, which means it can get large shipments from a transportation hub to their final destination. It’s also a top trucking company in Europe, where it also has a dominant position in the delivery of online orders.

Customers include retailers, e-commerce sites and food and beverage companies.

Jacobs, XPO’s chairman and chief executive officer, is a zealous dealmaker who has done more than 500 acquisitions, building four companies before XPO. That included construction equipment renter United Rentals Inc. and trash collector United Waste Systems Inc., which is now owned by Waste Management Inc.

RELATED CONTENT

RELATED VIDEOS

Bloomberg

Tesla Pursues Building a New U.S. Plant With China’s Dominant Battery Maker

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A PAINTING IN WHICH A RED HOT AIR BALLOON IS TETHERED TO A GIANT ANCHOR

    Will FTC Succeed in Banning Non-Compete Clauses in Employment Contracts?

    HR & Labor Management
  • Casestudy_cover_portrait_595x841.jpg

    Now We Can Improve The Delivery Experience

    Logistics
  • WORKERS INTERACT WITH VARIOUS TYPES OF CARGO MOVING EQUIPMENT ON A CROWDED DOCK

    White House Urged to Intervene in West Coast Port Labor Talks

    Global Gateways
  • TWO FINGERS MANIPULATE WOODEN LETTER BLOCKS TO TURN FROM SHOWING THE WORD RECOVERY TO RESILIENCE

    A Data-Driven Approach to Supply Chain Resilience

    Technology
  • A MEDLEY OF GRAPHS SHOWING ZIG-ZAG RESULTS AGAINST A MAP OF THE WORLD AND AN IMAGE OF OIL DERRICKSiStock-peshkov-1316669671(1).jpg

    Bringing the Supply Chain Closer: Nearshoring Is Here

    Sourcing/Procurement/SRM

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing