XPO Restarts Sale of European Supply Chain Business
(Bloomberg) -- XPO Logistics Inc. is reviving a sale of its European supply chain business, according to people familiar with the matter, after the process had paused during the coronavirus pandemic.
The business, which does contract logistics, could fetch between $4 billion and $4.5 billion in a potential sale, one of the people said, asking not to be identified because the information isn’t public.
The company has reached out to potential private equity and strategic buyers in recent weeks, the people said, asking not to be identified because the information isn’t public.
No final decisions have been made and XPO could still opt to keep the businesses, the people said. A representative for XPO declined to comment.
XPO retained advisers to review strategic options, including sales or spinoffs, of business units in Europe and North America, Bloomberg News reported at the start of the year.
Greenwich, Connecticut-based XPO is one of the world’s largest freight brokerage providers and helps companies arrange the movement of goods. Customers include retailers, e-commerce sites and food and beverage companies. It’s a top trucking group in Europe, where it has a strong position in the delivery of online orders.
XPO is led by Chief Executive Officer Bradley Jacobs, a serial dealmaker. In recent years, Jacobs has slowed on acquisitions to focus on stock buybacks, citing the high prices of potential takeover targets.
Shares of XPO have risen 9% this year, giving it a market value of $7.9 billion.
©2020 Bloomberg L.P.