XPO Logistics has sold its truckload business to TransForce for $558million – using the proceeds to ‘pay down debt’, increase return on capital, and improve its long-term growth profile.
The truckload business includes 7,500 trailers, 3,000 tractors and 29 locations – these were a part of the October 2015 purchase of Con-way.
“TransForce is getting the 19th largest asset-based truckload carrier in the U.S., a highly experienced workforce, and a presence in the cross-border Mexico freight corridor,” said Bradley Jacobs, chairman and chief executive officer, XPO Logistics. “We divested these assets to concentrate on growing our value to customers in the areas where we’re leaders in the industry: contract logistics, truck brokerage, less-than-truckload, last mile, intermodal, drayage, expedite and managed transportation.”
“This transaction strengthens our balance sheet and improves our long-term growth profile. In addition to deleveraging, the sale reduces our annual capex requirements, increases our return on capital, and lessens the cyclicality of our operations.”
