XPO Logistics Inc. is examining the sale of its North American freight forwarding division as part of a deal that could cost between $ 400 million and $ 600 million, according to a published report that has been confirmed independently.
Bloomberg first reported the story late Friday. FreightWaves subsequently received confirmation from people familiar with the matter.
The Expedition Division is part of a collection of four XPO assets (NYSE: XPO) during the fourth quarter plans to stand out in a separate company. The XPO brokerage division is the most famous and profitable of the four. Apart from freight forwarding, others are the ultimate mile and managed shipments.
Nomination combined with possible sale or listing of your European business and in late March the sale of his North American intermodal operation for $ 710 million in cash at STG Logistics, will leave XPO as a carrier of LTL net play. Last summer he spun his logistics business into what is now GXO Logistics Inc. (NYSE: GXO)
XPO does not disclose the financial results of its freight forwarding business. In the first quarter, revenue from freight forwarding and managed transportation operations was $ 551 million. The total margin for the two companies was $ 166 million. The XPO defines margin as gross revenue minus transportation and service costs other than depreciation and amortization.
The combined margin for LTL and the brokerage business XPO was $ 594 million, which is about 60% of the total margin of $ 1.03 billion for the company from Greenwich, Connecticut.
The FREIGHTWAVES TOP 500 In the list of carriers for rent XPO Logistics (No. 8).
The FREIGHTWAVES TOP 500 In the list of carriers for rent XPO Logistics (No. 8).
https://www.freightwaves.com/news/xpo-considering-sale-of-freight-forwarding-business
