XPO Logistics Plans To Spin Off Logistics Segment To Shareholders

(RTTNews) - XPO Logistics, Inc. (XPO) announced Wednesday that its board of directors approved a plan to spin off of 100% of its logistics segment as a separate publicly traded company.

The spin-off will be tax-free to XPO shareholders and would result in XPO shareholders owning stock in both companies.

The transaction is currently expected to be completed in the second half of 2021, subject to various conditions.

If completed, the spin-off will result in separate businesses with clearly delineated service offerings: XPORemainCo, a provider of less-than-truckload or LTL and truck brokerage transportation services; and NewCo, the second largest contract logistics provider in the world.

Both companies are expected to trade on the New York Stock Exchange.

According to the XPO board, the two independent companies are expected to be well-equipped to capitalize on secular growth trends in their sectors.

If the spin-off is completed as expected, Brad Jacobs, chairman and chief executive officer of XPO Logistics, will continue in his roles at XPORemainCo, and will become chairman of the NewCo board.

Troy Cooper will continue to serve as XPORemainCo's president; and the executives currently leading XPO's global logistics segment will continue to serve in senior positions with NewCo.