(Reuters) – XPO Logistics Inc said on Wednesday it plans to spin off its warehousing and logistics business into a separate publicly traded company.
The freight transportation and truck brokerage businesses will remain with XPO, while the new company will focus on e-commerce fulfillment, owning about 200 million square feet of warehouse space.
The company, which has about 97,000 employees globally, said it intends to structure the separation as a tax-free transaction to XPO shareholders, and expects to complete it in the second half of 2021.
Brad Jacobs will remain the chairman and chief executive officer of XPO while also becoming the chairman of the new company.
The companies are expected to trade on the New York Stock Exchange.
(This story corrects to say company has about 97,000 employees, not 58,000, in paragraph 3)
Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila