XPO shares will continue to trade on the New York Stock Exchange under the symbol “XPO” and, effective as of yesterday, GXO will begin “regular way” trading on the NYSE under the symbol “GXO.”
Commenting on the completion of the spin-off, Brad Jacobs, chairman and chief executive officer of XPO Logistics, said:
“With the timely completion of our spin-off, XPO and GXO are moving forward with powerful momentum as independent public companies. I want to thank the many people whose work over the past eight months has made this initiative a reality. We’ve given both businesses a clear line of sight to unlocking their full potential.”
XPO Logistics first announced the spin-off in early December, saying the change would result in “separate businesses with clearly delineated service offerings”:
“XPO board currently believes that the optimal path to unlock aggregate equity value is to create two independent companies that are each well-equipped to capitalize on secular growth trends in their sectors. If completed, the spin-off will result in separate businesses with clearly delineated service offerings: XPORemainCo, a global provider of less-than-truckload (LTL) and truck brokerage transportation services; and NewCo, the second largest contract logistics provider in the world. Both companies are expected to trade on the New York Stock Exchange.”
In addition, XPO stressed that a lower debt profile with enhanced earnings potential would make it easier to achieve each company’s target of an investment-grade credit rating.
In a statement published in March, XPO said its spin-off would “be in a strong position 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.”
XPO also argues that GXO will have an “undiluted focus” on its strategic priorities and blue-chip customer base, with a standalone equity currency to create long-term value for its stakeholders.