XPO Logistics Plans $500 Million Share Sale
The former Express-1 Expedited Solutions, which was renamed after investor Bradley Jacobs became its chief executive officer, said in its filing that the funds would be used for “general corporate purposes.”
In June, Jacobs told Transport Topics, he intends to build the firm into a logistics provider with annual sales of more than $1 billion. XPO had revenue of $157 million last year.
Today, the only publicly traded logistics companies are C.H. Robinson Worldwide Inc., Hub Group Inc. and Pacer International Inc. Robinson’s 2010 revenue was $9.3 billion, Hub Group’s was $1.8 billion, and Pacer’s was $1.5 billion.
“We serve a diverse client base primarily within North America,” the prospectus stated. It described “premium transportation and logistics services to thousands of customers” that include same day, time critical, special handling and customized logistics offerings.
Its three units are Express-1, an expedited transport provider; Concert Group Logistics, which is a freight forwarder; and Bounce Logistics, a truck brokerage.
Jacobs offered to invest $150 million in cash to take control of the company, which was renamed XPO in early September after shareholders approved the deal.
The investment included a provision that the renamed company will sell 75,000 shares of preferred stock to Jacobs and other investors that could be converted into 10.71 million shares of common stock at a $7 per share conversion price.
The shares are part of the offering that also could include other common shares, preferred stock, warrants and debt securities.
