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XPO Logistics’ spin-off busines...

XPO Logistics’ spin-off  business officially named GXO

XPO Logistics’ spin-off business officially named GXO

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Gregor Gowans

Gregor Gowans

Journalist Trans.INFO


XPO Logistics’ spin-off  business officially named GXO

XPO Logistics has officially unveiled GXO as the company name for the planned spin-off of its logistics business. The announcement was made yesterday and the GXO website is already live.

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 yesterday, XPO said its spin-off “will 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.

Malcolm Wilson, XPO’s chief executive officer for Europe, has been named as the CEO of GXO.

Commenting on the announcement, Wilson said:

“The new company’s brand identity captures the qualities that make us an industry leader — our ability to deliver faster, leaner, smarter logistics for customers at lower cost, using advanced automation and data science.”

Photo credits: XPO Logistics / GXO

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