US-based company, XPO Logistics, has divested its North American intermodal business to STG Logistics for cash proceeds of approx. $710 million USD.
This transaction is subject to a customary post-closing purchase price adjustment.
The intermodal unit, which XPO has reported as part of its Brokerage and Other Services segment, generated $1.2 billion USD of revenue in 2021. The divested operations provide rail brokerage and drayage services; 48 locations and approximately 700 employees have transferred to the buyer in the transaction.
“This divestiture simplifies our business model and moves our capital structure closer to investment-grade — two priorities in our strategic plan to unlock significantly more value for our stakeholders,” said XPO Logistics Chairman and CEO, Brad Jacobs.
“We’ve completed a key step in preparing for our planned spin-off, when we’ll separate XPO into two publicly traded leaders in less-than-truckload transportation and tech-enabled brokered transportation services.”
In other news, XPO Logistics expanded its LTL network.
In 2020, XPO Logistics announced its business spinoff plans.