We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » XPO finds a willing buyer for its $710 million intermodal unit

XPO finds a willing buyer for its $710 million intermodal unit

3PL sheds another layer in sale to STG Logistics as Connecticut conglomerate continues to unwind years of acquisitions.

xpo Screen Shot 2022-03-25 at 11.37.23 AM.png
March 25, 2022
Ben Ames
No Comments

Third party logistics conglomerate XPO Logistics is continuing to shed layers, announcing today that it has sold off its North American intermodal business as planned, through a $710 million deal with STG Logistics Inc. 

The move comes just months after it spun off its contract warehousing arm as a standalone company now called GXO Logistics. And earlier in March, Greenwich, Connecticut-based XPO said it would slim down even further by separating its tech-enabled brokered transportation services from its less-than-truckload (LTL) business in North America, then selling off its European business and North American intermodal operation.

XPO has now delivered on a major segment of that promise, saying the divestiture advances its strategic plan to create two pure-play, publicly traded companies through a spin-off later this year. “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, chairman and chief executive officer of XPO Logistics, said in a 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.”

For the sale price of $710 million, Chicago-based STG gains an intermodal unit that generated $1.2 billion of revenue in 2021. Those operations provide rail brokerage and drayage services and will transfer some 700 employees in 48 locations when the deal is done. Originally formed through XPO's purchase of Pacer in 2014 and Bridge Terminal Transport in 2015, the unit is North America's third largest provider of containerized transportation services, including 11,000 containers, 2,200 tractors, and 5,200 chassis.

Although the move was not a surprise, analysts said XPO was able fetch a good price for the transaction, according to an investors note from Bascome Majors, a stock analyst with Susquehanna International Group LLP (SIG). “XPO's intermodal sale was expected on the back of press leaks dating back to 2021 and the spinoff announcement a few weeks ago. Encouragingly, XPO management got the deal done at terms moderately more favorable than we'd anticipated,” Majors said.

STG said the acquisition was worth the price in order to expand its position in containerized logistics. “The combined business, which will go to market as STG Logistics, will stand as North America's leading provider of seamless, fully integrated, port-to-door containerized logistics services including drayage, transloading, warehousing, fulfillment, rail transportation, and associated final mile distribution,” the company said in a release.

STG raised the funds for the purchase from its private equity parent company, Wind Point Partners, in collaboration with new funding from Oaktree Capital Management L.P., including Oaktree's Transportation Infrastructure Investing and Global Opportunities Group.

"We are combining STG's leading position in facility-based container logistics with XPO Intermodal's leading position in container transport, creating a platform with unparalleled capabilities,” STG CEO Paul Svindland said in a release. “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."

Big news! STG has acquired the #intermodal division of @XPOLogistics. Read about it on our blog. https://t.co/0BZQPaFrms #MergersandAquisitions #supplychain pic.twitter.com/CQMmA8CXgg

— STG Logistics (@stglogistics) March 25, 2022

Today, we announced the sale of our North American intermodal business, a key step in advancing our strategic plan to create two pure-play industry powerhouses. Read more in our latest press release: https://t.co/6Uy8ewlWPI

— XPO Logistics, Inc. (@XPOLogistics) March 25, 2022
Intermodal
KEYWORDS STG Logistics XPO Logistics
  • Related Articles

    Study finds disconnect in B2B buyer-seller relationship

    ITS ConGlobal Selects Octopi by Navis for New Intermodal Facility in Oregon

    MBOX Terminals Signs Subscription Agreement for Octopi by Navis for its New Intermodal Terminal in Serbia

Ben Ames is Editor at Large and a Senior Editor at Supply Chain Quarterly?s sister publication, DC Velocity.

Recent Articles by Ben Ames

FloorFound lands $10.5 million backing for its large-item returns network

CMA CGM to buy 9% stake in Air France-KLM and operate combined air freight fleet

GXO pairs with investment firm to back logistics tech startups

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing