XPO, Inc.

Last updated

XPO, Inc.
FormerlyXPO Logistics, Inc.
(2011–2022)
Company type Public
Founded2000;24 years ago (2000)
Founder Brad Jacobs
Headquarters Greenwich, Connecticut, US
Number of locations
564 (2022) [1]
Key people
  • Brad Jacobs (Chairman)
  • Mario Harik (CEO)
  • Dave Bates (COO)
RevenueIncrease2.svg US$7.72 billion (2022)
Increase2.svg US$377 million (2022)
Increase2.svg US$666 million (2022)
Total assets Decrease2.svg US$6.27 billion (2022)
Total equity Decrease2.svg US$1.01 billion (2022)
Number of employees
38,000 (December 2022) [1]
Website www.xpo.com OOjs UI icon edit-ltr-progressive.svg
Footnotes /references
[2] [3] [4] [5] [6]

XPO, Inc. is an American transportation company that conducts less-than-truckload shipping in North America. [7] [8] [9] The company has headquarters in Greenwich, Connecticut, US and 564 locations globally. [1]

Contents

History

2011–2021

The company was initially called Express-1 Expedited Solutions and listed on American Stock Exchange under the ticker symbol XPO. It was acquired by Brad Jacobs and renamed to XPO Logistics in September 2011. [8] [10] [11] In June 2012, XPO listed its shares on the New York Stock Exchange. [12]

XPO has acquired a number of logistics businesses in North America and overseas. [13] Some notable acquisitions include: 3PD, Inc. (August 2013), Pacer International, Inc. (March 2014), Norbert Dentressangle SA (April 2015) and Con-way Inc. (October 2015). XPO paid US$3.56 billion, which included acquired debt, for European transport company Norbert Dentressangle and $3 billion for Con-way. [14] [15]

XPO sold its truckload division (acquired from Con-Way) to TransForce for $558 million in cash. [16]

In June 2016, XPO was included in the Fortune 500 list of the largest US corporations based on revenue. [17]

The company has conducted logistics operations for the Evian Golf Championship and the Paris Marathon. [18] In 2019, XPO Logistics released a mobile game simulating freight operations for the Tour de France. [19]

Beginning in 2021, XPO Logistics broke into three separate publicly-traded companies, making XPO solely an LTL (less-than-truckload) provider. [20] [21]

XPO truck XPO Truck and Trailer on Bridge.png
XPO truck

GXO Logistics

In August 2021, the company spun off its contract logistics business into a separate company named GXO Logistics, with facilities located primarily throughout North America and Europe. [22] [20] GXO stands for "game-changing opportunities". [23] Malcolm Wilson is the CEO of the company. [24]

RXO

This was followed by XPO Logistics spinning off its brokerage and other services segment to a separate company named RXO, Inc. in November 2022. [25] [26] [27] [28] RXO stands for "reliability multiplied by outperformance" and provides global forwarding. [28] RXO is headquartered in Charlotte, North Carolina, and provides managed transportation and last-mile logistics. [29] Drew Wilkerson was appointed as CEO of the company. [9]

2022–present

XPO dropped "Logistics" from its name in December 2022 and remains solely an LTL carrier, which allows multiple customers to transport goods in the same truck. [25] In August 2022, Brad Jacobs announced he was stepping down as CEO and would serve as executive chairman. Mario Harik, XPO's former chief information officer, who also serves as the company's president, was appointed as CEO. [22] In March 2022, XPO sold its North American intermodal business to Illinois-based STG Logistics for $710 million. [30] [20] In March 2023, XPO appointed J. Wes Frye, a retired industry veteran, to its board of directors. [31] In April 2023, XPO announced the hire of Dave Bates as chief operating officer of North American LTL. [32] In December 2023, XPO received approval from a Delaware bankruptcy court to acquire 28 service centers of Yellow Corporation for $870 million as a part of Chapter 11 bankruptcy. [33] [34] The acquisition was finalized in January 2024. [35]

Operations

North American LTL

XPO LTL facility in Tomah, Wisconsin, formerly a Con-way Freight terminal XPO LTL.jpg
XPO LTL facility in Tomah, Wisconsin, formerly a Con-way Freight terminal

XPO is the second largest provider of less-than-truckload services in North America. [36] Since November 2022, the company's North American operations have been solely focused on LTL freight transportation. [37] LTL is a freight model which involves shipping smaller quantities of goods for multiple customers at a time. [38] In 2022, XPO's CEO stated that the company operates in 99% of US zip codes. [39] As of March 2022, XPO produces new and re-manufactured trailers at a factory in Searcy, Arkansas. [39] [40]

European Transportation Segment

XPO provides dedicated truckload, LTL, truck brokerage, managed transportation, last mile and freight forwarding in Europe. [41] The company also manages multimodal solutions, such as road-rail and road-short sea combinations. [42] 1,000 new drivers were hired in the U.K. and Ireland in 2022. [43] [44]

Controversy

A 2018 article by The New York Times profiled the experiences of several employees working at a Memphis warehouse operated by XPO. [45] [46] [47] The warehouse had no windows or air conditioning, and sometimes temperatures there surpassed 100 °F (38 °C). The article described several cases of warehouse workers miscarrying, which were attributed to management's refusal to allow pregnant workers to avoid strenuous jobs. [48] According to the article and XPO employees, a worker died of cardiac arrest on the warehouse floor in 2017; employees said they were told by managers to continue working. A spokesperson for XPO called the allegations in the article "unsubstantiated, filled with inaccuracies", and claimed they were "fueled by the Teamsters". [45]

In October 2021, XPO agreed to pay $30 million to 784 drivers who said the company paid them less than minimum wage. [49] [50]

See also

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References

  1. 1 2 3 Schott, Paul (October 31, 2022). "Greenwich-based XPO Logistics to spin off truck-brokerage business on Tuesday". CT Insider. Retrieved March 14, 2023. After the spin-off, XPO will serve about 43,000 shippers, with 564 locations and 38,000 employees worldwide.
  2. ↑ "XPO, Inc. 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 13, 2023.
  3. ↑ "XPO Logistics Ranked Fourth Largest Freight Brokerage Firm and Top 50 Logistics Company". Reuters. November 13, 2013.
  4. ↑ "Profile:XPO Logistics, Inc". Reuters. Archived from the original on October 10, 2010.
  5. ↑ "Facts and Figures" (PDF). XPO Logistics. October 31, 2018. Retrieved November 1, 2018.
  6. ↑ "XPO Logistics hires new CFO as it weighs asset sale". The Wall Street Journal. February 10, 2020.
  7. ↑ "XPO Logistics: Fast growth through acquisitions and management style". Westfair Communications. November 17, 2017. Retrieved March 15, 2023.
  8. 1 2 "Jacobs puts $150 million into Express-1, aims big". Reuters. June 14, 2011. Retrieved March 15, 2023.
  9. 1 2 Robinson, Chuck (August 9, 2022). "XPO Logistics revenue's up as company manages changes". Land Line. Retrieved February 2, 2023.
  10. ↑ "XPO's Billionaire Chairman Is Hunting for His Next Big Deal". Time. November 27, 2022. Retrieved March 14, 2023.
  11. ↑ "Better Than Amazon? How Bradley Jacobs Turned A $63M Bet Into A $12 Billion Transportation Empire". Forbes. Retrieved March 14, 2023.
  12. ↑ "XPO Logistics heads to NYSE". FreightWaves. June 11, 2012.
  13. ↑ "XPO Logistics eyes up to $8bn in deals". Financial Times . May 3, 2018.
  14. ↑ "US logistics group XPO buying France's Dentressangle". Business Insider. April 28, 2014.
  15. ↑ "XPO Logistics to Acquire Trucker Con-way in $3 Billion Deal". The Wall Street Journal. September 9, 2015.
  16. ↑ "XPO Logistics Sells Truckload Shipping Business to TransForce for $558 Million". The Wall Street Journal. October 27, 2016.
  17. ↑ "Here are the 15 New Companies Joining the Fortune 500". Fortune . June 6, 2016. Retrieved June 7, 2016.
  18. ↑ "Golf: XPO Logistics nominato partner ufficiale per i trasporti della Evian Championship". SPORTFAIR (in Italian). September 15, 2017. Retrieved October 22, 2017.
  19. ↑ "XPO Moves The Tour: The Game". App Store. Retrieved July 22, 2019.
  20. 1 2 3 O'Neal, Lydia (March 25, 2022). "XPO Logistics Sells Intermodal Business to STG". Wall Street Journal. ISSN   0099-9660 . Retrieved January 30, 2023.
  21. ↑ "XPO Logistics will now focus just on trucking, as it spins off and sells other businesses". CNBC. March 8, 2022. Retrieved March 14, 2023.
  22. 1 2 Young, Liz (August 4, 2022). "Brad Jacobs Will Step Aside as CEO of XPO Logistics". Wall Street Journal. ISSN   0099-9660 . Retrieved February 2, 2023.
  23. ↑ "XPO Sets GXO Logistics as Name of New Spinoff Company". Transport Topics. March 18, 2021. Retrieved March 15, 2023.
  24. ↑ Council, Jared (April 10, 2021). "XPO Logistics Taps CIO for Supply-Chain Services Spinoff". Wall Street Journal. ISSN   0099-9660 . Retrieved February 2, 2023.
  25. 1 2 O'Neal, Lydia (March 8, 2022). "XPO Logistics to Spin Off Freight Brokerage, Exit Intermodal and Europe Business". Wall Street Journal. Retrieved August 3, 2022.
  26. ↑ O'Neal, Lydia (May 9, 2022). "XPO Logistics Names CEO for New Freight Spinoff". Wall Street Journal. Retrieved August 3, 2022.
  27. ↑ Northington, Laurie (June 9, 2022). "XPO Taps Yoav Amiel as Chief Information Officer for Spin-Off". Home Furnishings Business. Retrieved August 3, 2022.
  28. 1 2 "XPO Names New Tech Brokerage Company RXO". Transport Topics. July 12, 2022. Retrieved July 13, 2022.
  29. ↑ Schott, Paul (July 13, 2022). "XPO Logistics announces name of truck-brokerage spin-off". CT Insider. Retrieved February 2, 2023.
  30. ↑ Schott, Paul (March 25, 2022). "Greenwich's XPO Logistics sells shipping business for $710M". GreenwichTime. Retrieved January 30, 2023.
  31. ↑ "XPO names former Old Dominion CFO to board of directors". Transport Dive. Retrieved May 30, 2023.
  32. ↑ Root, Al. "XPO Stock Soars. One Executive Is Worth More Than Half a Billion Dollars". www.barrons.com. Retrieved May 30, 2023.
  33. ↑ Nakrosis, Stephen (December 12, 2023). "XPO Gets Approval to Acquire 28 Service Centers as Part of Yellow's Bankruptcy". Wall Street Journal. ISSN   0099-9660 . Retrieved December 13, 2023.
  34. ↑ "XPO ready to deploy 28 new service centers". Yahoo Finance. December 13, 2023. Retrieved December 13, 2023.
  35. ↑ Jarrell, Zachary (January 25, 2024). "Large freight company acquires former Yellow Corp. facility in Dayton during bankruptcy auction". www.bizjournals.com. Retrieved January 29, 2024.
  36. ↑ "XPO Logistics to buy U.S. trucker Con-way in $3 bln deal". Reuters. September 9, 2015. Retrieved March 15, 2023.
  37. ↑ "XPO Logistics invests in IT for the long haul". CIO. Retrieved March 2, 2023.
  38. ↑ Nelissen, Leo (February 20, 2023). "The Hidden Gem Of Logistics: XPO Inc.'s Untapped Potential (NYSE:XPO) | Seeking Alpha". seekingalpha.com. Retrieved March 2, 2023.
  39. 1 2 Gilroy, Roger (March 25, 2022). "XPO Ramps Up Trailer Production in Arkansas". Transport Topics. Retrieved August 3, 2022.
  40. ↑ Stocking, Richard (April 8, 2022). "Trucking is changing. Are you adapting?". Commercial Carrier Journal. Retrieved August 3, 2022.
  41. ↑ Smith, Jennifer (February 7, 2018). "XPO Logistics Extending Home Delivery Service to Europe". Wall Street Journal. ISSN   0099-9660 . Retrieved October 31, 2023.
  42. ↑ "UNITED STATES SECURITIES AND EXCHANGE COMMISSION".
  43. ↑ "XPO hires more than 1,000 UK drivers in 2022". Parcel and Postal Technology International. November 30, 2022. Retrieved March 14, 2023.
  44. ↑ "XPO hires more than 1,000 UK drivers in 2022 following salary review". The Grocer. Retrieved March 14, 2023.
  45. 1 2 Silver-Greenberg, Jessica; Kitroeff, Natalie (October 21, 2018). "Miscarrying at Work: The Physical Toll of Pregnancy Discrimination". The New York Times. ISSN   0362-4331 . Retrieved December 6, 2021.
  46. ↑ "XPO Gains National Notoriety for its Horrific Working Conditions". Memphis Flyer . Retrieved January 15, 2023.
  47. ↑ "Working conditions in Memphis warehouse linked to miscarriages, NYT reports". The Commercial Appeal . Retrieved January 15, 2023.
  48. ↑ "Life and Death on the Warehouse Floor". Ms. Magazine. October 31, 2018. Retrieved January 15, 2023.
  49. ↑ Roosevelt, Margot (October 13, 2021). "Port truckers win $30 million in wage theft settlements". Los Angeles Times . Retrieved July 30, 2023.
  50. ↑ Kingston, John (October 13, 2021). "XPO settles 2 California worker classification cases for nearly $30M". FreightWaves. Retrieved July 30, 2023.
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