GXO Logistics Completes Spin-Off From XPO

By Amit Chowdhry ● Aug 2, 2021
  • GXO Logistics (NYSE: GXO) started its first day of regular way trading on the NYSE today as it successfully spun off from XPO Logistics . These are the details.

GXO Logistics (NYSE: GXO) started its first day of regular way trading on the New York Stock Exchange as its leadership team and board members had celebrated GXO becoming an independent, publicly-traded company by ringing the Opening Bell. GXO is the former global logistics segment of XPO Logistics (NYSE: XPO) and it successfully spun off today as the world’s largest pure-play contract logistics provider.

GXO launches with about 94,000 team members worldwide and over 208 million square feet of warehouse space in 869 locations across 27 countries. And GXO’s global blue-chip customers include Apple, Nike, Nestlé, and Whirlpool along with high-growth companies in e-commerce and other key sectors, including apparel, technology, food and beverage, and consumer electronics.

GXO invests in leading-edge technology to help solve the increasingly complex requirements of today’s supply chains. And by using advanced automation and collaborative robots to boost productivity, GXO improves site safety for its team and efficiency for its customers. Plus the company also uses machine learning, data science and predictive analytics to turn logistics into a competitive advantage for retailers, manufacturers, and other supply chain owners.

Under the terms of the previously announced separation, XPO stockholders received one share of GXO common stock for every one share of XPO common stock held as of the close of business on the record date for the distribution (July 23, 2021). GXO shares were distributed at 12:01 a.m. Eastern Time today in a distribution that is intended to be tax-free to XPO stockholders for U.S. federal income tax purposes. And in connection with the separation, GXO made a $794 million cash payment to XPO.

KEY QUOTE:

“This is an exciting milestone in GXO’s history. We consider it a privilege to launch GXO as a new company at the top of the industry — the world’s largest pure-play logistics provider. We have a powerful platform for future growth, including our culture of innovation, strong customer relationships, seasoned leaders and a world-class team. This is day one of unlocking vast new potential for our company.”

— Malcolm Wilson, chief executive officer of GXO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.