XPO Logistics' Spin-Off Is Almost Ready To Go

XPO Logistics' (NYSE: XPO) upcoming spin-off has been a long time coming.

CEO Brad Jacobs first announced his intention to split up the company in January of last year. Back then, the plan was to sell off the parts of the business aside from the Less-Than-Truckload (LTL) unit.

The coronavirus pandemic scotched that idea, killing the market in M&A. At the end of 2020, XPO refined the plan to separate its logistics and transportation business in order to add shareholder value, as Jacobs has long believed that XPO trades at a "conglomerate discount" to its peers. As he sees it, some of the value of XPO is lost in the complexity of the business, in part because the company has no true peers on the market. The spin-off, which cleaves its contract logistics from its LTL and truck brokerage, solves this problem.

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Source Fool.com