XPO Logistics to hive off logistics business

XPO Logistics has announced that its logistics business is to be rebranded GXO Logistics and is eventually to be separated from the core business of XPO – less than truckload freight and truck brokerage.

GXO Logistics is to be given the tagline ‘Logistics at full potential’. Brad Jacobs, chairman and chief executive officer of XPO Logistics, said, “Today, we took an exciting step forward on our path to spinning off our logistics segment. 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.”

Thanks to the strong position that XPO Logistics has put it in and the promising trends in logistics, GXO Logistics is well set up to be a big player in the sector. E-commerce, omnichannel and a shift towards outsourcing supply chain services all put the new company in a high growth market.

“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 chief executive officer – 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.”

Though the name of GXO Logistics is new, XPO announced the business would be separated in December. Upon its launch, GXO would be the second largest contract logistics provider in the world.

There are no certainties as yet whether the separation will happen or when it will happen. A Form 10 registration of the separation has been filed with the US SEC and the division of the business has to go through a regulatory and business process to succeed. It is hoped it will be completed by the end of 2021.

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