XPO Logistics divests truckload business to TransForce for $558m
XPO Logistics has divested its truckload business to Canadian transportation firm TransForce for about $558m.
XPO intends to use the proceeds from the transaction to clear its debt.
Under the deal, TransForce purchased around 3,000 tractors, 7,500 trailers and 29 locations that were part of the XPO’s Con-way.
In October 2015, XPO acquired Con-way, which is an American multinational freight transportation and logistics company Con-way for $3bn.
The acquired business is expected to generate annual revenue of about $530m in the current fiscal year.
Through its brokerage network, XPO will continue to provide full truckload services to customers in the US, Mexico and Canada.
XPO Logistics chairman and CEO Bradley Jacobs said: "TransForce is getting the 19th largest asset-based truckload carrier in the U.S., a highly experienced workforce, and a presence in the cross-border Mexico freight corridor.
“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."
TransForce, chairman, president and CEO Alain Bédard said: “This acquisition significantly strengthens TransForce’s presence in the North American truckload landscape with prominent market positions in domestic US and cross-border Mexico freight.”
With around 85,000 employees and 1,425 locations, XPO Logistics provides transportation and logistics services to around 50,000 customers.
Image: TransForce has acquired North American truckload shipping business from XPO Logistics. Photo: courtesy of XPO Logistics, Inc.