March 20, 2020 3:45 PM, EDT

XPO Backs Away From Possible Sale, Spinoffs of Units

XPOXPO Logistics

[Stay on top of transportation news: Get TTNews in your inbox.]

XPO Logistics Inc. said the current economic environment has compelled it to step back from earlier plans to explore the sale or spinoff of some of its assets.

In a two-sentence 8-K filing submitted on March 20 to the Securities and Exchange Commission, the Greenwich, Conn.-based company said, “On January 15, 2020, XPO Logistics, Inc. (“XPO”) announced that its board of directors had authorized a review of strategic alternatives, including the possible sale or spinoff of one or more of XPO’s business units. In light of current market conditions, XPO has terminated the strategic review process.”

Since making that January announcement, the coronavirus pandemic has sent the stock market plunging and has positioned the freight industry as a vital cog in the effort to address the soaring need for food and medical supplies amid predictions from economists that the country may be headed into a recession.

XPO on March 9 announced it was acquiring the majority of the United Kingdom-based contract logistics operations of Kuehne + Nagel. The deal includes 75 facilities and Kuehne + Nagel’s customer base, XPO reported, noting that the addition will complement its existing European operations.

RELATED: XPO to Acquire Majority of Kuehne + Nagel’s UK-Based Contract Logistics Operations

XPO Logistics ranks No. 1 on the Transport Topics Top 50 list of the largest logistics companies in North America, a position the company has held since 2017. It ranks No. 3 on the TT Top 100 list of the largest for-hire carriers in North America.

Want more news? Listen to today's daily briefing: