XPO announced plans to spinoff its tech-enabled brokered transportation services to its shareholders, transforming the remaining business into a pure-play less-than-truckload (LTL) company.
The spin-off will separate XPO into two publicly traded transportation powerhouses in North America.
- XPO expects to divest its European business and North American intermodal operation to simplify its transportation service offering.
- The planned spin-off will create two focused, publicly traded companies at the top of their industries. For instance, the LTL business would become a pure-play industry leader — the third largest provider of domestic and cross-border LTL shipping in North America.
- The spinoff business would encompass XPO’s best-in-class, tech-enabled truck brokerage platform and complementary services for last-mile logistics, managed transportation and global forwarding.
- XPO currently expects to complete the spin-off in the fourth quarter of 2022.