XPO Logistics Inc. has sold its North American intermodal business to STG Logistics Inc. for cash proceeds of approximately $710 million.
According to the Greenwich-headquartered XPO, the intermodal unit was part of the company”™s Brokerage and Other Services segment and generated $1.2 billion of revenue in 2021. The divested operations cover 48 locations staffed by approximately 700 employees and provides rail brokerage and drayage services.
“This divestiture simplifies our business model and moves our capital structure closer to investment-grade ”“ two priorities in our strategic plan to unlock significantly more value for our stakeholders,” said XPO Chairman and CEO Brad Jacobs. “We”™ve completed a key step in preparing for our planned spin-off, when we”™ll separate XPO into two publicly traded leaders in less-than-truckload transportation and tech-enabled brokered transportation services.”
