XPO Logistics (NYSE:XPO) has filed the initial paperwork to complete the planned spin-off of its logistics operations in the second half of the year and unveiled the planned name for the spin.
If all goes according to plan, the new "GXO Logistics" will trade as an independent company sometime before year's end. The company in a statement announcing the name said that the letters are meant to stand for "the game changing opportunities we're bringing to the table," with a nod to its XPO heritage.
XPO in December said it intends to split into two independent publicly traded companies, attempting to eliminate the so-called "conglomerate discount" causing the transportation giant's valuation to lag behind more focused rivals. The new GXO would be the second-largest contract logistics company in the world, with a focus on e-commerce, warehouse automation, and the outsourcing of 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," Malcolm Wilson, XPO's current CEO for Europe who will lead GXO, said in the statement. "I'm looking forward to leading our global team to the many new opportunities in our future."
XPO's current CEO, Bradley Jacobs, is planning to remain at the trucking company that will keep the XPO name. He will also serve as chairman of both companies.