XPO Sets GXO Logistics as Name of New Spinoff Company
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XPO Logistics has selected GXO Logistics as the name of the stand-alone logistics company that it will spin off from its larger operation later this year.
“Today, we took an exciting step forward on our path to spinning off our logistics segment,” said XPO CEO Brad Jacobs. “The new company is called GXO — three letters that stand for the game-changing opportunities we’re bringing to the table for customers, employees and shareholders, with a nod to our XPO heritage. GXO will take this legacy into the future as an independent public company, with countless ways to deliver logistics at full potential.”
XPO has filed a confidential initial Form 10 registration statement with the U.S. Securities and Exchange Commission for the planned spinoff, which XPO said represents “another significant milestone in the process required to complete the transaction.” XPO expects to complete the spinoff in the second half of this year.
In a March 18 news release XPO said, “GXO 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.”
“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,” said Malcolm Wilson, XPO’s CEO of Europe, who has been named to become CEO of GXO. “I’m looking forward to leading our global team to the many new opportunities in our future.”
Wilson was named CEO on Jan. 12. He’ll assume the role once the transition is complete.
That month he told Transport Topics, “As a new logistics pure-play company, we’re going to benefit from powerful secular tailwinds. Large customers are tending to accelerate their outsourcing of logistics. Now that is great news for our business. It’s going to be great for our company.”
Wilson
He added, “Demand is increasing for supply chain automation, robotics, and we’re really at the forefront of that industry innovation.”
He also said then that the separation would help the new company focus on key objectives, with e-commerce at the top of the list.
“The spinoff of the logistics business is going to bring lots of benefits,” Wilson said. “Each management team of the new company is going to have the ability to focus solely on the company’s strategic priorities and business operations. Each company is also going to have great flexibility to tailor its decision-making. And that can be on things like capital allocation, capital structures.”
“We’re already starting from a great position,” Wilson said. “The company is already a leader in contract logistics, reverse logistics and omnichannel fulfillment. What we’re seeking to do is build on these areas and do even more that can then help our customers navigate what is becoming an increasingly complex supply chain.”
In December 2020, XPO announced a plan to spin off the logistics segment and create two pure-play companies focused separately on transportation and logistics. Post-separation, XPO will remain a global provider of less-than-truckload freight transportation and truck brokerage, and GXO will be, according to XPO, the second-largest contract logistics provider in the world.
In December, Jacobs said, “By uncoupling our transportation and logistics segments, we intend to create two high-performing, pure-play companies to serve the best interests of all our stakeholders. We currently believe that this spinoff is the most effective way to unlock significant value for our customers, employees and shareholders.”
XPO has released a video introduction for GXO that spotlights its logo and message. The new company will go to market with the tagline “Logistics at full potential.” Usage of the new name, logo and other brand assets will become effective upon completion of the spinoff.
XPO has retained Goldman Sachs & Co. as its financial adviser and Wachtell, Lipton, Rosen & Katz as its legal adviser to assist with the spinoff process.
XPO currently ranks No. 1 on the Transport Topics Top 50 list of the largest logistics companies in North America.
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