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XPO Logistics closes US$558 million sale of truckload biz to TransForce
XPO Logistics has wrapped up the sale of its truckload business to TransForce Inc for US$558 million in cash, the proceeds of which will pay down debts.
The divested truckload operation encompasses 3,000 tractors, 7,500 trailers and 29 locations that were part of the October 2015 acquisition of Con-way Inc. XPO will continue to offer full truckload services in the United States, Mexico and Canada through its extensive brokerage network, reported American Journal of Transportation.
"TransForce is getting the 19th largest asset-based truckload carrier in the US, a highly experienced workforce, and a presence in the cross-border Mexico freight corridor," said XPO Logistics CEO Bradley Jacobs.
"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."
Mr Jacobs said the transaction strengthens the balance sheet and the 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," he said.
The divested truckload operation encompasses 3,000 tractors, 7,500 trailers and 29 locations that were part of the October 2015 acquisition of Con-way Inc. XPO will continue to offer full truckload services in the United States, Mexico and Canada through its extensive brokerage network, reported American Journal of Transportation.
"TransForce is getting the 19th largest asset-based truckload carrier in the US, a highly experienced workforce, and a presence in the cross-border Mexico freight corridor," said XPO Logistics CEO Bradley Jacobs.
"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."
Mr Jacobs said the transaction strengthens the balance sheet and the 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," he said.
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