XPO Board of Directors Approves RXO Spinoff
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XPO Logistics Inc. received board approval to spin off its technology-based brokered operations into a stand-alone business, the company announced Oct. 10.
RXO Inc. will be an independent publicly traded company focused on brokering full truckload freight transportation with its proprietary digital marketplace. The board also approved distribution of all outstanding shares of RXO common stock to holders of XPO common stock.
“I’m extremely pleased that our spinoff has board approval and is moving toward a Nov. 1 distribution for our shareholders,” said Brad Jacobs, CEO of XPO Logistics. “XPO and RXO will each benefit from a strong board of directors who bring valuable perspectives to the growth strategy. I look forward to continuing to collaborate with Mario and his team to create significantly more value in XPO with the board’s support.”
The planned spin-off of our tech-enabled brokered transportation platform, RXO, has been approved by our Board of Directors, and we’ve announced changes to the XPO board post-spin. https://t.co/u0yBiuM14J — XPO (@XPOLogistics) October 10, 2022
XPO also announced the appointment of a new slate of board members that will be effective once the spinoff is complete, including three additional directors. Jacobs will continue to lead the board and will serve as executive chairman.
Johnny C. Taylor Jr., Allison Landry, Jason Aiken and Michael Jesselson will remain as directors. The three additional directors will be Bella Allaire, Mario Harik and Irene Moshouris. Allaire is executive vice president of technology and operations with Raymond James Financial. Moshouris is senior vice president and treasurer of United Rentals.
Harik currently is XPO’s chief information officer and president of its less-than-truckload operations. He will become the CEO of the new company once the spinoff is completed.
XPO said the spinoff will be effected through a pro rata distribution of all outstanding shares of RXO common stock to its own stockholders. The record date for the distribution will be Oct. 20, and the distribution is expected to be completed by Nov. 1. The distribution does not require shareholder approval, but it is subject to the satisfaction or waiver of certain conditions.
Once the distribution is completed, XPO will continue to trade on the New York Stock Exchange under the ticker symbol XPO, while RXO will trade on the NYSE under the symbol RXO.
XPO Logistics ranks No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and No. 6 on the TT Top 100 logistics companies list.
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