- 16 January 2020
- Transport / Logistics Services
XPO Logistics has announced it is reviewing the possibility of selling some of its business units, given the overall underperformance of the company in terms of its share value.
There is no set timetable for the review process and no business unit has been targeted for spin-off or sale. The only business unit that will not be up for review is the North American less-than-truckload (LTL) unit.
Chairman and chief executive officer Bradley Jacobs said: “The share price has increased more than ten-fold since our investment in 2011. Still, we continue to trade at well below the sum of our parts and at a significant discount to our pure-play peers.
“That’s why we believe the best way to continue to maximise shareholder value is to explore our options, while remaining intensely committed to the satisfaction of our customers and employees.”
“DSV Panalpina has emerged as one of the leading consolidators, after the takeovers of UTi and Panalpina, and its new chairman recently earmarked road freight as the area for further expansion. Maersk recently confirmed its strategy to grow land-based container logistics from 25% to 50% of revenues through bolt-on M&A, focusing on supply chain management, container truck freight and warehouse capacity.”