XPO Logistics To Spin-Off Its Brokerage Business Into A Separate Publicly Traded Company

XPO Logistics To Spin-Off Its Brokerage Business Into A Separate Publicly Traded Company

On March 8, 2022, XPO Logistics Inc (NYSE: XPO, $72. 39, Market Capitalization:$8. 3 billion), a leading provider of freight transportation services, primarily truck brokerage and less-than-truckload (LTL) services, announced that its board of directors has approved a plan to spin-off its brokered transportation services (truck brokerage) business, transforming the remaining company into a pure-play less than- truckload company. The planned spin-off transaction is intended to be tax-free to XPO shareholders and would create two focused, publicly traded companies that are industry leaders in their own right. Along with the spin-off of its brokered transportation services business, XPO also plans to divest its European business through either a sale or a listing on a European stock exchange. In North America, the company is currently under an exclusivity agreement with a potential sale of its intermodal business, which provides rail brokerage and drayage services. The company's announcement comes in after the spin-off of GXO Logistics (Logistics business), which was completed on August 3, 2021. The pricing of the new shares and the number of shares XPO shareholders would receive are yet to be decided. The company expects to complete the planned spin-off in 4Q22, subject to various conditions, including the effectiveness