Transportation and warehousing conglomerate XPO Logistics Inc. is staying on track for the planned spin-off of its contract logistics arm, announcing today that the new company will be called GXO Logistics Inc.
Meanwhile, the remaining truck brokerage and less than truckload (LTL) transportation division will continue to use its current name, XPO Logistics. Last month XPO confirmed that the pandemic had not changed those plans, saying it intends to complete the split by the second half of 2021.
The news lends clarity to the maneuver, first announced in 2020, which will establish GXO as the second-largest contract logistics provider in the world after DHL Supply Chain. The nascent corporation had previously been referred to by the placeholder names “NewCo” and “SpinCo,” but will now use its official title, adorned with the marketing tagline “Logistics at full potential.”
According to XPO, GXO will be in a strong position to capitalize on the logistics industry’s “predominant secular tailwinds” including steep growth in e-commerce and omnichannel retail, fast-growing customer demand for automation and digital capabilities, and a shift toward outsourcing supply chain services.
“The new company’s brand identity captures the qualities that make us an industry leader — our ability to deliver faster, leaner, smarter logistics for customers at lower cost, using advanced automation and data science,” said Malcolm Wilson, XPO’s chief executive officer – Europe, who has been named to become CEO of GXO. “I’m looking forward to leading our global team to the many new opportunities in our future.”
