XPO Retains Truckload Group
In a Securities Exchange Commission filing, XPO Logistics noted that it plans to retain the Con-way Truckload business unit. XPO said that after completing its evaluation of strategic opportunities to divest Con-way’s truckload business, it is holding onto it “as part of its integrated supply chain offering [and] in deciding to retain this business, the company considered the value that shippers place on owned truckload capacity, particularly in U.S.-Mexico cross-border lanes, and the opportunity to improve the utilization of the assets.”
XPO had previously considered selling off Con-way Truckload around the time its acquisition of Con-way was made official. XPO has received several unsolicited offers to acquire the assets but at that time had not made any decision whether to keep it or sell it. XPO CEO Brad Jacobs recently stated that it decided to keep its truckload group, because it sees a lot of growth opportunities with it that outweigh the financial benefits of selling it. Keeping the truckload group also provides XPO with the opportunity to integrate it with customers with the company’s other service lines, as historically the truckload sales force has operated as a silo separate from the rest of the organization.
Con-way had acquired the truckload operation in 2007, when it was known as Contract Freighters Inc.