Jacobs informed the WSJ that Goldman Sachs and J.P. Morgan have been “mandated to run four simultaneous auction processes”: for XPO’s European transport and supply chain units, its supply chain business in the Americas and Asia-Pacific and its North American transport system, less the LTL company. “We may not offer all four, we might sell none,” stated Mr. Jacobs.
Saying the market hasn’t been rewarding the business as it should, the board of XPO Logistics stated the business is checking out tactical choices consisting of the sale or spinoff of approximately 4 business units, which would not include its less-than-truckload shipping business.
According to the Wall Street Journal, XPO invested $8 billion on acquisitions between 2011 and 2015, including U.S. trucker Con-way Inc., in addition to freight brokerage, last-mile shipment, warehousing and supply chain services.
XPO said it has kept Goldman Sachs and J.P. Morgan Securities as monetary consultants, and Wachtell, Lipton, Rosen & & Katz as its legal consultant to help with the evaluation procedure.
“XPO is the 7th best-performing stock of the last years on the Fortune 500, based upon Bloomberg market information,” said Bradley Jacobs, chairman and CEO of XPO in a release.”The share price has increased more than tenfold since our investment in 2011. Still, we continue to trade at well below the amount of our parts and at a substantial discount to our pure-play peers. That’s why we think the very best method to continue to make the most of investor value is to explore our options, while remaining intensely committed to the satisfaction of our clients and staff members.”
XPO did not provide a timeline for the review procedure, adding “there can be no assurance of any particular result.”
In 2017 Home Depot was supposedly thinking about an acquisition of XPO, according to ReCode.