XPO Logistics Divests North American Truckload Operation to TransForce
(Thomson Reuters ONE) -
$558 Million Strategic Sale of Assets Will Reduce Debt, Increase Return on
Capital and Improve Long-Term Growth Profile
GREENWICH, Conn. - October 27, 2016 - XPO Logistics, Inc. (NYSE: XPO) ("XPO")
today announced that it has completed the sale of its truckload business to
TransForce Inc. (TSX: TFI) for approximately $558 million in cash, subject to
customary adjustments. XPO will use the proceeds from the transaction to pay
down debt.
The divested truckload operation encompasses approximately 3,000 tractors,
7,500 trailers and 29 locations that were part of the October 2015 acquisition
of Con-way Inc. XPO will continue to offer full truckload services to customers
in the United States, Mexico and Canada through its extensive brokerage network.
XPO is the second largest freight brokerage provider in the world.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said,
"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. 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."
Jacobs continued: "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."
The divested operations, which have been reported as part of XPO's
Transportation segment, were expected to generate approximately $10 million of
operating income for the remaining two months of 2016, and depreciation and
amortization of approximately $10 million. The company will update its financial
targets to reflect the transaction when it reports its third quarter results on
November 2, 2016.
J.P. Morgan served as financial advisor to XPO Logistics, and Scudder Law Firm,
P.C. acted as legal advisor.
About XPO Logistics
XPO Logistics, Inc. (NYSE: XPO) is a top ten global logistics provider of
cutting-edge supply chain solutions to the most successful companies in the
world. The company operates as a highly integrated network of people, technology
and physical assets in 34 countries, with over 85,000 employees and 1,425
locations. XPO uses its network to help more than 50,000 customers manage their
goods more efficiently throughout their supply chains. The company has two
reporting segments: transportation and logistics. Its business is well
diversified by geographies, verticals and types of service. XPO's corporate
headquarters is in Greenwich, Conn., USA, and its European headquarters is in
Lyon, France. www.xpo.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including the expected impact of
the sale of XPO's truckload business on our balance sheet, long-term growth
profile, capex requirements, return on capital and the cyclicality of our
operations. All statements other than statements of historical fact are, or may
be deemed to be, forward-looking statements. In some cases, forward-looking
statements can be identified by the use of forward-looking terms such as
"anticipate," "estimate," "believe," "continue," "could," "intend," "may,"
"plan," "potential," "predict," "should," "will," "expect," "objective,"
"projection," "forecast," "goal," "guidance," "outlook," "effort," "target" or
the negative of these terms or other comparable terms. However, the absence of
these words does not mean that the statements are not forward-looking. These
forward-looking statements are based on certain assumptions and analyses made by
us in light of our experience and our perception of historical trends, current
conditions and expected future developments, as well as other factors we believe
are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions that may cause actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause or contribute to a material
difference include those discussed in XPO's filings with the United States
Securities and Exchange Commission and the following: economic conditions
generally; competition and pricing pressures; our ability to align our
investments in capital assets, including equipment, service centers and
warehouses, to our customers' demands; our ability to successfully manage our
growth, including by maintaining effective internal controls; our ability to
successfully integrate and realize anticipated synergies, cost savings and
profit improvement opportunities with respect to acquired companies; our ability
to retain our and our acquired businesses' largest customers; our ability to
develop and implement suitable information technology systems; our substantial
indebtedness; our ability to raise debt and equity capital; our ability to
attract and retain key employees to execute our strategy, including retention of
acquired companies' key employees; our ability to maintain positive
relationships with our network of third-party transportation providers; our
ability to attract and retain qualified drivers; litigation, including
litigation related to alleged misclassification of independent contractors;
labor matters, including our ability to manage our subcontractors, and risks
associated with labor disputes at our customers and efforts by labor
organizations to organize our employees; risks associated with our self-insured
claims; risks associated with defined benefit plans for our current and former
employees; fluctuations in currency exchange rates; fluctuations in fixed and
floating interest rates; our ability to execute our growth strategy through
acquisitions; fuel price and fuel surcharge changes; weather and other service
disruptions; governmental regulation; and governmental or political actions,
including the United Kingdom's likely exit from the European Union. All forward-
looking statements set forth in this press release are qualified by these
cautionary statements and there can be no assurance that the actual results or
developments anticipated will be realized or, even if substantially realized,
that they will have the expected consequences to, or effects on, XPO or its
businesses or operations. Forward-looking statements set forth in this press
release speak only as of the date hereof, and XPO undertakes no obligation to
update forward-looking statements to reflect subsequent events or circumstances,
changes in expectations or the occurrence of unanticipated events except to the
extent required by law.
Investor Contact:
XPO Logistics, Inc.
Tavio Headley, +1-203-930-1602
tavio.headley(at)xpo.com
Media Contact:
XPO Logistics, Inc.
Erin Kurtz, +1-203-489-1586
erin.kurtz(at)xpo.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: XPO Logistics, Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 27.10.2016 - 22:15 Uhr
Sprache: Deutsch
News-ID 503446
Anzahl Zeichen: 8523
contact information:
Town:
Greenwich
Kategorie:
Business News
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