Greenwich-based XPO Logistics Inc. has announced it was separating its tech-enabled brokered transportation services from its less-than-truckload (LTL) business in North America while divesting its European business and North American intermodal operation.
According to the company, the tech-enabled truck brokerage services operations would be headquartered in Charlotte, North Carolina, while the North American LTL segment would remain in Greenwich. XPO plans to have the standalone LTL entity listed as a publicly traded company.
The divesture of its European business would occur either by sale or a listing on a European stock exchange.
“Our two core businesses of North American less-than-truckload and tech-enabled truck brokerage are industry-leading platforms in their own right, each with a distinct operating model and a high return on invested capital,” said Brad Jacobs, chairman and chief executive officer of XPO Logistics. “We believe that by separating these businesses through a spin-off, we can significantly enhance value creation for our customers, employees and shareholders, as we did with our successful spin-off of GXO last year.”
The company expects to complete the planned spinoff in the fourth quarter of 2022, subject to regulatory approvals.
