XPO Logistics has announced that its board of directors has approved a plan to split its logistics segment and spin off a separate publicly traded company.
The company said it intends to structure the spin-off as a transaction that is “tax-free” to XPO shareholders and would result in XPO shareholders owning stock in both companies.
After a reportedly “thorough examination” of all strategic alternatives, the XPO board said it currently believes that the best path is to create two independent companies that are each “well-equipped” to capitalise on secular growth trends in their sectors.
Brad Jacobs, chairman and CEO of XPO Logistics, said: “By uncoupling our transportation and logistics segments, we intend to create two high-performing, pure-play companies to serve the best interests of all our stakeholders.
“Both businesses will have greater flexibility to tailor strategic decision-making and capital allocations to their end-markets, with the benefit of strong positioning as customer-focused innovators.”
He added: “We currently believe that this spin-off is the most effective way to unlock significant value for our customers, employees and shareholders.”
The transaction is currently expected to be completed in the second half of 2021, subject to various conditions.