XPO Logistics completes sale of North American truckload operation

XPO Logistics has completed the sale of its North American truckload business to TransForce for around $558m. The divested truckload operation includes around 3,000 tractors, 7,500 trailers and 29 locations that were part of the October 2015 acquisition of Con-way Inc.

XPO said it will continue to offer full truckload services to customers in the United States, Mexico and Canada through its brokerage network.

Bradley Jacobs, chairman and chief executive officer of XPO Logistics, commented: “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.”