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XPO, Inc.

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XPO Logistics, Inc
Company typePublic
NYSE: XPO
PredecessorExpress-1 Expedited Solutions Inc.
ServicesLogistics provider of freight transportation services
Revenue$177 million (2011) [1]
DivisionsExpress-1, Concert Group Logistics, and Bounce Logistics[2]
Websitewww.xpologistics.com

XPO Logistics, Inc. is an American corporation headquartered in Greenwich, Connecticut. It is a non-asset based, third-party logistics provider of freight transportation services, including expedited ground services, freight forwarding and freight brokerage.[3]

Formerly known as Express-1 Expedited Solutions Inc., the company was renamed XPO Logistics in September 2011, after corporate consolidation entrepreneur and investor Bradley S. Jacobs led a team that agreed to invest up to $150 million in cash in the company.[4][5][6] Jacobs became the company’s largest shareholder, and assumed the positions of chairman and chief executive officer.[7] XPO is one of the 10 largest air and expedited surface transportation carriers in the United States and Canada.[8]

History

Express-1 Expedited Solutions was founded in May 1989 by Michael R. Welch and Keith Avery, with a focus on transportation of time-critical, high-value shipments.[9] The company was purchased in August 2004 by the transportation firm Segmentz, Inc., a public company that subsequently went through a restructuring to close unprofitable business units. In 2006, Segmentz changed its name back to Express-1 Expedited Solutions, and began trading its stock under the stock symbol XPO.[10][11]

In May 2003, the company’s business unit Express-1 Dedicated, Inc. was awarded a contract to provide dedicated transportation services to Ford Motor Company, a contract that would yield approximately 90 percent of the business unit’s revenue.[12] Ford announced in November 2008 that it was ending the contract, and the business unit ceased operations in February 2009.

In January 2008, Express-1 acquired Concert Group Logistics, Inc., a non-asset based freight forwarder.[13] Two months later, it launched Bounce Logistics, Inc., a business unit providing freight brokerage services.

In February 2009, the firm acquired First Class Expediting Services, Inc. to strengthen its operations in the Midwest.[14] In October of that year, the firm expanded its international services with the acquisition of LRG International, Inc., a global forwarding company.[15][16]

In June 2011, Express-1 became the vehicle for Bradley Jacobs’ entry into the truck brokerage industry, an industry that Jacobs viewed as ripe for consolidation, with only 15 percent of trucking currently outsourced to third-party logistics brokers.[17] Jacobs in the 1990s had spearheaded the consolidation of the waste management and equipment rental industries in North America through an aggressive strategy of cold starts of greenfield locations as well as acquisitions.[18]

With the $150 million investment in the company, including up to $135 million from his investment firm, Jacobs Private Equity LLC,[19] Jacobs gained ownership of about 71 percent of the company.[20][21] He announced plans to move the headquarters from Michigan to Greenwich, Connecticut, with the name changed to XPO Logistics, trading under the symbol XPO on the New York Stock Exchange. On October 12, 2011, Jacobs rang the bell to open the Exchange.[22]

In February 2012, the company said it would open a North American operations center in Charlotte, North Carolina, a move expected to create 200 jobs in the area.[23][24] XPO selected Charlotte in part because of as much as $4.3 million in state incentives.[25] North Carolina’s Economic Investment Committee awarded XPO a Job Development Investment Grant, making it eligible to receive a maximum benefit package of $3.22 million. Another $1.07 million would come from the state’s utility fund for infrastructure improvements.[26]

On March 12, 2012, XPO announced an underwritten public offering of 6 million shares of common stock.[27] Three days later, the company increased the offering to 8 million shares, at $15.75 per share. [28] The IPO closed at 9.2 million shares of common stock, with net proceeds of roughly $136.7 million.[29] XPO Logistics listed its shares on the New York Stock Exchange on June 14, 2012.[30]

On August 3, 2012 XPO Logistics completed the purchase of Kelron Logistics, Inc., a $100 million truck broker based in Canada. [31] [32]

On October 25, 2012 XPO Logistics completed the purchase of Turbo Logistics, Inc., the freight brokerage division of Ozburn-Hessey Logistics, LLC for $50 million.[33] [34]

Operations

XPO now operates as three business units: Express-1, a ground expedited freight carrier in North America; Concert Group Logistics, a provider of international freight forwarding services; and Bounce Logistics, which provides freight brokerage services and manages the company’s alliances with independent trucking owner-operators.[2] All three divisions are part of the SmartWay Transport Partnership, a program administered by the U.S. Environmental Protection Agency under which freight shippers, carriers and logistics companies collaborate to voluntarily achieve improved fuel efficiency and reduced emissions.[35] On May 8, 2012, XPO Logistics acquired Continental Freight Services, Inc., a non-asset based, third party logistics company providing truck brokerage services. Founded in 1980, Continental Freight is headquartered in Columbia, South Carolina.[36] [37]

Awards and Recognition

  • National Shippers Strategic Transportation Council Expedited Carrier of the Year Award – 2009, 2010[38][39]
  • Inbound Logistics Top 100 Motor Freight Carrier – 2010[40]
  • Great West Casualty Co. National Safety Awards Program Gold Award – 2010[41]
  • Whirlpool Special Services Supplier of the Year Award – 2011[42]
  • UPS Urgent Services Carrier of the Year Award – 2011[43]
  • SupplyChainBrain Great Supply Chain Partner – 2011[44]

References

  1. ^ (13 March 2012). XPO Logistics Plans Public Stock Offering, Journal of Commerce
  2. ^ a b "Profile:XPO Logistics Inc". reuters.com.
  3. ^ "XPO Logistics to Open Operations Center Creating Over 200 Jobs". charlottechamber.com. February 28, 2012.
  4. ^ "The big bet of Brad Jacobs". dcvelocity.com. January 9, 2012.
  5. ^ "Jacobs has big plans for Express-1 expediter". greenwichtime.com. February 7, 2012.
  6. ^ "Jacobs Interview on Express-1 Investment". bloomberg.com. June 14, 2011.
  7. ^ "Bradley S. Jacobs to Lead Equity Investment of up to $150 Million in Express-1 Expedited Solutions". businesswire.com. June 14, 2011.
  8. ^ "Express-1 To Be Acquired By Equity Firm". Transport Topics. August 12, 2011.
  9. ^ "Express-1 Expedited Solutions CEO Speaks About His Company". seekingalpha.com. May 21, 2007.
  10. ^ "Profitable Segmentz to Change Name". Journal of Commerce. Mar 6, 2006.
  11. ^ "Over 20 Years of Expedited Shipping Excellence". express-1.com.
  12. ^ "EXPRESS-1 DEDICATED'S CONTRACT WITH FORD MOTOR CO. TO CEASE". ccjdigital.com. November 19, 2008.
  13. ^ "Express-1 announces acquisition of Concert Group Logistics". expeditersonline.com. February 4, 2008.
  14. ^ "Express-1 Acquires 3PL First Class Expediting". Transport Topics. February 3, 2009.
  15. ^ "Express-1 Expedited Solutions XPO Acquires LRG International Inc. to Expand International Services to a Global Logistics Market". Vertical News. October 24, 2009.
  16. ^ "Express-1 Expedited Solutions (XPO) Acquires LRG International". bloomberg.com. October 9, 2009.
  17. ^ "Jacobs Interview on Express-1 Investment". bloomberg.com. June 14, 2011.
  18. ^ "Q&A: Keep On Trucking". themiddlemarket.com. June 16, 2011.
  19. ^ "Jacobs has big plans for Express-1 expediter". greenwichtime.com. February 7, 2012.
  20. ^ "United Rentals Founder's Next Bet: Transportation". dealbook.nytimes.com. June 15, 2011.
  21. ^ "Jacobs has big plans for Express-1". expeditersonline.com. September 8, 2011.
  22. ^ "12 October 2011 XPO Logistics rings the NYSE Opening Bell". Youtube. October 12, 2011.
  23. ^ "XPO Logistics to Open Operations Center Creating Over 200 Jobs". charlotechamber.com. February 28, 2012.
  24. ^ "Logistics company to create 200 jobs in Charlotte". wcnc.com. February 28, 2012.
  25. ^ "XPO Logistics bringing 200 jobs to Charlotte". charlotteobserver.com. February 29, 2012.
  26. ^ "XPO Logistics, A Freight Transportation Provider, To Create 200 Jobs in Charlotte". areadevelopment.com. February 29, 2012.
  27. ^ "XPO Logistics Announces Common Stock Offering". investorpoint.com. March 12, 2012.
  28. ^ "XPO Logistics increases size of shares for IPO". logisticsmgmt.com. March 15, 2012.
  29. ^ "XPO Logistics closes $137 million IPO". logisticsmgmt.com. March 23, 2012.
  30. ^ "XPO Logistics Celebrates Listing on the NYSE". nysetv. 14 Jun 2012.
  31. ^ "XPO buys Canadian broker for $8 million in cash". dcvelocity.com. August 9, 2012.
  32. ^ "Interview With Bradley Jacobs: Executing To Perfection". seekingalpha.com. August 8, 2012.
  33. ^ "XPO Logistics acquires OHL's truck brokerage unit". dcvelocity.com. October 26, 2012.
  34. ^ "XPO Logistics Acquires OHL's Turbo Logistics". reuters.com. October 25, 2012.
  35. ^ http://www.xpologistics.com/
  36. ^ "XPO Logistics Announces First Quarter 2012 Results". nytimes.com. May 9, 2012.
  37. ^ "XPO Logistics Plans Acquisitions Worth $250 Million". joc.com. May 10, 2012.
  38. ^ "Express-1 Expedited Solutions: Thriving in the Face of Adversity". expeditersonline.com. May 2, 2010.
  39. ^ "Express-1 Named Top Expedited Carrier for 2010". truckinginfo.com.
  40. ^ "Express-1 Named One of Inbound Logistics' Top 100 Motor Freight Carriers". expeditersonline.com. Oct 15, 2010.
  41. ^ "Express-1 Presented a Gold Award by Great West Casualty Company". newsblaze.com. April 20, 2011.
  42. ^ "Express-1 Named Special Services Supplier of the Year by Whirlpool". businesswire.com. September 29, 2011.
  43. ^ "XPO Logistics` Express-1 Business Named Carrier of the Year by UPS Urgent Services". reuters.com. January 11, 2012.
  44. ^ "SupplyChainBrain Names Concert Group Logistics to 100 Great Supply Chain Partners List". Globe Newswire. August 3, 2011. Retrieved April 25, 2012.
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