XPO to spin off North American, European transport, logistics units
CONNECTICUT's XPO Logistics CEO Brad Jacobs said he intends to sell or spin off up to four of his business segments, following several challenging quarters, reports New York's Air Cargo World
CONNECTICUT's XPO Logistics CEO Brad Jacobs said he intends to sell or spin off up to four of his business segments, following several challenging quarters, reports New York's Air Cargo World.
The sell-off of XPO's North American and European transportation and logistics divisions is intended to address concerns that these holdings are undervalued, Mr Jacobs said. He said selling individual segments would increase their valuation as standalone companies.
Regarding the larger logistics outlook, Mr Jacobs added that he's 'sensing a bottom,' that the industrial economy is still not very robust, but seems to no longer be on the decline, and that consumer and retail demand is strong.
'XPO is the seventh best-performing stock of the last decade on the Fortune 500, based on Bloomberg market data. The share price has increased more than tenfold since our investment in 2011,' he said.
'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 maximise shareholder value is to explore our options, while remaining intensely committed to the satisfaction of our customers and employees,' Mr Jacobs said.
The company said does not intend to sell its North American less-than-truckload unit. XPO has retained Goldman Sachs and JP Morgan Securities as its financial advisors and Wachtell, Lipton, Rosen & Katz as its legal advisor to assist with the review process.