Transportation and logistics provider XPO Logistics Inc. is steaming full speed toward a planned spinoff of its contract logistics segment, announcing today that the move was still on track for completion during the second half of 2021 and naming its new leaders.
In the company’s vision, XPO’s future will include two publicly traded companies, including a less-than-truckload (LTL) and truck brokerage transportation provider with the placeholder name “RemainCo” that will be led by XPO’s current chairman and CEO, Brad Jacobs, alongside XPO’s current president, Troy Cooper.
The other branch has been temporarily dubbed “NewCo” and will be led by Malcolm Wilson, who is currently CEO of XPO Logistics Europe. Supporting him will be Richard Cawston, now XPO’s president, supply chain logistics – Europe, and Ashfaque Chowdhury, now XPO’s president, supply chain logistics – Americas and Asia Pacific.
Both of Wilson’s deputies originally joined XPO through previous acquisitions, with Cawston coming through XPO’s purchase of Norbert Dentressangle in 2015 and Chowdhury included in the firm’s takeover of New Breed Logistics in 2014.
At the time, the New Breed deal also added another famous name to the company’s rolls, as its founder Louis DeJoy continued with XPO until 2018 before being named last year by President Trump as postmaster general of the U.S. Postal Service and instituting a number of controversial cost-cutting initiatives that slowed the delivery of high profile items such as ballots, pharmaceuticals, paychecks, and holiday gifts.
When the spinoff is complete, the warehousing group will control some 212 million square feet of space at 890 locations worldwide, making it the second largest contract logistics provider in the world, after DHL Supply Chain. Its capabilities will include clients in e-commerce, food and beverage, consumer electronics, industrial, and reverse logistics, and the XPO Direct shared distribution network.
“Malcolm, Richard, and Ashfaque are highly innovative leaders who are recognized as best-in-class by blue-chip customers,” Jacobs said in a release. “This team has worked together for years, and is ideally suited to unlock the growth opportunities in the standalone company. They have a long track record of creating sustainable value in the business through sophisticated operations, including advanced automation and digital warehouse management.”
Gartner, Inc.