XPO Logistics splits into two separate companies. Transport and logistics will become two separate divisions, which will operate under their own names.
Earlier this year, XPO Logistics already hinted at "strategic alternatives", referring to the possible sale or spin-off of business units. So that will be a split-up. The Board of Directors has already approved the plans.
If all goes according to plan, XPO Logistics will consist of two companies by mid-2021. The transport arm will then bear the name XPORemainCo, while the logistics arm will be named NewCo. NewCo will become the second largest company in contract logistics, according to XPO.
More flexibility
XPO Logistics expects the split to create more value for customers, employees and shareholders. "Separating transport and logistics will create two high-perfoming, pure-play companies," stated Brad Jacobs, chairman of the board and CEO at XPO Logistics. The two organisations will be able to respond faster to trends and developments in their respective markets.
Jacobs will stay on as chairman and CEO of XPORemainCo after the split and become chairman of the NewCo board. Troy Cooper will stay on as president of XPORemainCo. XPO Logistics' current executives will lead NewCo in the new structure.
