XPO Logistics, which deals in less-than-truckload shipping and truck brokerage, has sold its North American intermodal business to STG Logistics for $710 million, XPO has announced.
The intermodal unit, which involved about 700 employees and provided rail brokerage and drayage at 48 locations, generated about $1.2 billion in revenue in 2021. It is North America’s third-largest provider of container services, with 11,000 containers, 2,200 truck tractors, and 5,200 chassis.
“This divestiture simplifies our business model and moves our capital structure closer to investment-grade — two priorities in our strategic plan to unlock significantly more value for our stakeholders,” Brad Jacobs, CEO of Greenwich-based XPO, said in a press release.
“We’ve completed a key step in preparing for our planned spin-off, when we’ll separate XPO into two publicly traded leaders in less-than-truckload transportation and tech-enabled brokered transportation services.”
STG, based in Bensenville, Ill, describes itself as a leading provider of facilities-based containerised logistics services. Its facilities include 28 port locations totalling more than 5 million square feet.
“I could not be more excited about this game-changing acquisition,” STG CEO Paul Svindland said. “Once combined, the STG network will be able to handle a container from the instant it’s ready at a port or customer facility to the moment each individual shipment arrives at its final destination, all the while providing customers full visibility and a single source of accountability.”
For more information visit www.xpo.com