XPO Logistics’ board of directors approved the separation of its tech-enabled brokered transportation platform through the distribution of all the outstanding shares of common stock of its wholly owned subsidiary RXO to holders of XPO common stock.
The separation, once complete, will create two transportation leaders with distinct investment identities and clearly delineated value propositions in their respective industries. RXO will be the one of the largest broker of full truckload freight transportation in the United States. XPO will be a provider of less-than-truckload transportation in North America, with a European transportation business that the company plans to divest.
“I’m extremely pleased that our spin-off has board approval and is moving toward a Nov. 1 distribution for our shareholders. XPO and RXO will each benefit from a strong board of directors who bring valuable perspectives to the growth strategy,” Brad Jacobs, chairman and chief executive officer of XPO Logistics, said. “I look forward to continuing to collaborate with Mario and his team to create significantly more value in XPO with the board’s support.”
New XPO Board Composition
XPO also appointed new board members, effective with the separation, with six of them being independent.
Brad Jacobs will continue to lead the board, and Johnny C. Taylor, Jr., Allison Landry, Jason Aiken and Michael Jesselson will remain as directors. Jacobs will serve as executive chairman. Taylor will serve as lead independent director and will chair the compensation committee. Landry will serve as vice chairman and will chair the nominating, governance and sustainability committee. Aiken will chair the audit committee.
The three additional board members names are Bella Allaire, Mario Harik and Irene Moshouris.
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