GXO Logistics, Split from XPO, Reportedly Exploring Potential Sale

According to insiders, GXO Logistics Inc., a supply chain service provider that was spun off from XPO Inc. in 2021, is exploring the possibility of a sale.

These unnamed sources say that the company headquartered in Greenwich, Connecticut, is working with financial advisors. One source noted that GXO began reviewing its options after receiving interest from potential buyers.

No final decision has been made; GXO could also choose to continue operating independently. A spokesperson for GXO declined to comment on this matter.

Following a Bloomberg News report, GXO’s stock price rose by 8.3% in pre-market trading on Thursday. If the increase holds, it would be the largest single-day gain since December 2022. As of Wednesday, GXO had a market capitalization of approximately $6.1 billion. According to Bloomberg data, the company’s market value has decreased by about 22% since the spin-off.

The transportation and logistics industry, characterized by high fragmentation, often experiences significant M&A activity, providing opportunities for consolidation. Prior to spinning off GXO to streamline its business structure, XPO had built up GXO through a series of acquisitions. In 2022, XPO itself spun off what it called the brokerage transport division.

According to regulatory filings, GXO claims to be the world’s largest pure contract logistics service provider with over 970 facilities and operations in 27 countries. The company offers warehousing, distribution, order fulfillment, and a range of other supply chain services.

–With assistance from Subrat Patnaik.

(Updated fourth paragraph to reflect stock price movement information.)

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