XPO Logistics Split Aims to Unlock Value Reshape Market
XPO Logistics plans to spin off its global contract logistics business to address long-standing valuation concerns and overcome the 'conglomerate discount.' This move is expected to improve earnings per share and EBITDA multiples, maximizing shareholder value. Analysts believe the split will allow XPO to better meet customer needs and enhance its competitiveness in the less-than-truckload (LTL) transportation market. The separation is anticipated to be completed in the second half of 2021. The split aims to unlock value by allowing each entity to focus on its core strengths and attract investors with specific interests.