Today XPO Logistics announced the sale of their truckload operation to Canada’s largest trucking company, TransForce Inc., for $558 million in cash.
XPO took on the truckload operation as part of their October 2015 acquisition of Con-way Freight for $3 billion.
The sale will transfer approximately 3,000 tractors, 7,500 trailers and 29 locations to TransForce.
XPO says that they will continue to offer truckload services throughout the U.S., Mexico, and Canada through their brokerage network.
According to XPO CEO Bradley Jacobs,”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.”
XPO says that they plan to use the $558 million to pay down debt.
Sources:
Wall Street Journal
NASDAQ
Street Insider