XPO’s spin-off of GXO Logistics gets board approval

The board of directors for XPO Logistics has approved the separation of XPO’s contract logistics business into a new, distinct company, GXO Logistics, while XPO will retain the transportation division with a focus on less-than-truckload transportation and truck brokerage. [caption id="attachment_68051" align="alignright" width="450"] Photo: XPO Logistics[/caption] With the approval secured for the spin-off announced in December , separation will take place via pro rata distribution of GXO common stock to XPO stockholders as of the close of trading on July 23, according to a company statement on the board approval. When distribution completes as of Aug. 2, each XPO stockholder will receive one share of GXO common stock for each XPO common stock held. XPO will continue to trade on the New York Stock Exchange as XPO, and GXO will trade under the GXO ticker symbol. GXO expects three major structural tailwinds to be supportive of its business in the future: e-commerce, warehouse automation and outsourcing, XPO Chairman and CEO Brad Jacobs said during GXO’s investor day today. “Our logistics business has built a leading position in e-commerce, with about 40% of revenue coming from pure-play e-tailers and omnichannel retailers,” said Jacobs. “The automation tailwind is coming from customer demand for robotics and other kinds of advanced automation in logistics operations. And the accelerating trend toward outsourcing logistics to 3PLs is another long runway for us, as supply chains become more complex and consumers become more demanding.” Jacobs will serve as GXO chairman. Board members Marlene Colucci and Gena Ashe will resign from the XPO board to serve as GXO directors.

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