Global supply chain solutions provider XPO Logistics has unveiled GXO Logistics as the spin-off company of its logistics business.
Post-separation, XPO will remain a global provider of freight transportation, focusing on less-than-truckload and truck brokerage, with GXO set to be the second largest contract logistics provider in the world.
XPO Logistics Chairman and Chief Executive Officer Brad Jacobs said the company is taking an exciting step forward on their path to spinning off its 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,” Jacobs said.
“GXO will take this legacy into the future as an independent public company, with countless ways to deliver logistics at full potential,” he said.
Through years of investment in technology as part of XPO, GXO will be capitalising 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 spin-off company will be solely focused on its strategic priorities and blue-chip customer base, with a standalone equity currency to create long-term value for its stakeholders.
“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.”
In December 2020, XPO announced its intent to spin off the logistics segment of its existing business and create two pure-play industry powerhouses focused separately on transportation and logistics.
Source: XPO Logistics