XPO Logistics announced Tuesday that it has completed the spinoff of brokerage operation RXO Inc. The separation creates two independent, publicly traded companies.
“With the spinoff complete, XPO and RXO have both launched from positions of strength as independent public companies,” Brad Jacobs, XPO’s executive chairman and RXO’s nonexecutive chairman, stated in a news release. “I want to thank the many people who have worked to make our strategic plan a success and created powerful new avenues for value creation.”
Charlotte, North Carolina-based RXO is the nation’s fourth-largest truckload brokerage, generating $2.7 billion in truck brokerage revenue last year. The brokerage unit connects shippers to a network of approximately 100,000 carriers and over 1.5 million trucks in North America.
RXO’s asset-light platform has more than $5 billion in annual revenue when including managed transportation, freight forwarding and last-mile offerings.
The RXO Drive app connecting carriers to a tech-enabled freight platform has been downloaded 850,000 times. During the third quarter, 10,000 carriers were added to the network with 81% of brokered loads being created or covered digitally.
RXO has approximately 7,400 employees.
“[Tuesday] is a landmark moment for our business,” RXO CEO Drew Wilkerson stated in a separate release. “With the launch of RXO, we’ve established a standalone tech-enabled pure-play that will continue to thrive in any market. RXO is well-positioned to unlock value for our stakeholders.”
XPO is a top-five LTL provider. The company will divest its European transportation unit, making it an LTL pure-play, at a later date.
On Tuesday, shares of XPO were trading around $32 with shares of RXO hovering around $20. Shares of the combined XPO entity closed Monday at $51.74.
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