XPO Logistics' Board of Directors has authorised a review of strategic alternatives, including the possible sale or spin-off of one or more of XPO’s business units.
“XPO is the seventh best-performing stock of the last decade on the Fortune 500, based on Bloomberg market data,” said XPO Logistics Chairman and CEO, Bradley Jacobs.
“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,” he said.
XPO noted that there can be no assurance of any specific outcome. The company has not set a timetable for completion of the review process and has not determined which, if any, business units would be sold or spun off. However, the company does not intend to sell or spin off its North American less-than-truckload unit.
XPO has retained Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as its financial advisors and Wachtell, Lipton, Rosen & Katz as its legal advisor to assist with the review process.