GXO Logistics Inc. is the name of XPO Logistics”™ new spin-off, the Greenwich company announced this morning.
XPO disclosed in December that it was spinning off a pair of companies. GXO, which had been provisionally named NewCo, will be the second-largest contract logistics provider in the world. Usage of the new company name, logo and other brand components will become effective upon the completion of the spin-off, expected to take place in the second half of the year.
The other spin-off, provisionally called XPORemainCo, will be a global provider of less-than-truckload (LTL) and truck brokerage transportation services.
XPO Chairman and CEO Brad Jacobs said GXO”™s letters “stand for the game-changing opportunities we”™re bringing to the table for customers, employees and shareholders, with a nod to our XPO heritage. GXO will take this legacy into the future as an independent public company, with countless ways to deliver logistics at full potential.”
Jacobs said that thanks to years of investment in technology as part of XPO, GXO will be well positioned to capitalize on the logistics industry”™s predominant secular tailwinds: The growth in e-commerce and omnichannel retail, fast-growing customer demand for automation and digital capabilities and a shift toward outsourcing supply chain services.
“The new company”™s brand identity captures the qualities that make us an industry leader ”“ our ability to deliver faster, leaner, smarter logistics for customers at lower cost, using advanced automation and data science,” said Malcolm Wilson, XPO”™s chief executive officer – Europe, who in January was named to become CEO of GXO. “I”™m looking forward to leading our global team to the many new opportunities in our future.”
XPO has filed a confidential initial Form 10 registration statement with the U.S. Securities and Exchange Commission for the planned spinoff of its logistics business.
The transaction is subject to various conditions, including the effectiveness of the Form 10 registration statement, receipt of a tax opinion from counsel, the refinancing of XPO”™s debt on terms satisfactory to the XPO board of directors, and final approval by the XPO board of directors.
XPO has retained Goldman Sachs & Co. LLC as its financial adviser and Wachtell, Lipton, Rosen & Katz as its legal adviser to assist with the spinoff process.
