The New York-listed company, which specialises in trucking and freight forwarding services, has reportedly been working with advisers to gauge interest from potential buyers. Sources close to the matter told Bloomberg that the European business could fetch up to $2 billion.
However, discussions are still ongoing and XPO may ultimately decide to hold on to the assets for a longer period.
The company first announced its intention to sell the European division in 2020, as part of a broader strategy to focus on its less-than-truckload (LTL) business in North America. The sale never happened, but two years later rumours of a possible sell-off resurfaced in March 2022. The plan was again postponed due to weakened capital markets.
XPO’s European division is an important part of the business, generating $3.1 billion in revenue and $167 million in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the 12 months to 30 June 2023.
The potential sale of the European division would mark the final step in XPO’s extensive restructuring plan, which began in late 2020. The plan involves the separation of various units to transform XPO into a pure-play LTL carrier. The company previously spun off its contract logistics business, GXO, in 2021 and its brokerage business, RXO, in 2022.
Following the Bloomberg report, XPO shares jumped 7.7% to their highest level in four months.
It should be added though that when contacted by US transport portal Freightwaves for comment on the planned sale, an XPO spokesperson declined to address the ongoing market speculation surrounding the potential sale.