Transportation and contract logistics company XPO Logistics Inc. (XPO) will be splitting its warehousing and Logistics business to two different business entities further they will exist as two different public companies.
The company broke the news further adding freight transportation and truck brokerage businesses will stick with XPO whereas the new entity will focus on e-commerce fulfillment. The new entity will occupy up to 200 million square feet of warehouse space.
XPO is looking forward to coming up with a structural framework which will ensure the splitting will be a tax-free transaction to shareholders of the company.
Currently the company has a labor force of 58,000 employees across the world and expects to complete the separation in the second half of 2021. The separated companies will both be listed on the New York Stock Exchange.
Current Chief Executive Officer and chairman of XPO Brad Jacobs will continue holding these positions additionally he will also double up as the chairman of the new entity.