XPO Logistics Inc (NYSE:XPO) sells its North American intermodal business to STG Logistics, Inc. for ~$710 million in cash proceeds.
- This divesture advances XPO's strategic plan to create two pure-play, publicly traded companies through a spin-off later in 2022.
- Early in March, XPO stated its intentions to split its key North American business units into two publicly traded units and divest its European business and North American intermodal operation.
- Related: XPO Logistics to Split Company Into Two And Divest These Units To Unlock Value For Investors
- The intermodal unit, part of its Brokerage and Other Services segment, generated $1.2 billion of revenue in 2021. It provides rail brokerage and drayage services; 48 locations and ~700 employees have transferred to STG Logistics.
- Also read: Read How Analysts Reacted To XPO Logistics' Transformation Plan
- "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," commented Brad Jacobs, chairman and CEO of XPO Logistics.
- Price Action: XPO shares traded higher by 1.76% at $77.50 during the premarket session on Friday.
