Headquartered in Greenwich, Connecticut, XPO Logistics earned veterans employment recognition on the heels of offloading its North American intermodal business to STG for an eye-raising $710 million.
Its intermodal division reportedly pulled down upwards of $1.2 billion in revenue in 2021 through rail brokerage and drayage services across 48 facilities. The division reportedly employs approximately 700 people who are expected to transition over to the Chicago-based STG Logistics operation. Its intermodal division ranks as the continent’s third-largest in terms of container transportation, enjoying 2,200 tractors and 5,200 chassis.
“This divestiture simplifies our business model and moves our capital structure closer to investment grade — two priorities in our strategic plan to unlock significantly more value for our stakeholders,” XPO Chairman and CEO Brad Jacobs reportedly stated. “We’ve completed a key step in preparing for our planned spinoff, when we’ll separate XPO into two publicly traded leaders in less-than-truckload transportation and tech-enabled brokered transportation services.”
Reports indicate XPO may also be ready to move its European assets in an effort to pay down an estimated $3.3 billion in debt. The North American sale involves assets that include 11,000, 53-foot containers. Members of the STG leadership plan to integrate the services, assets, and employees into an organization that already handles 28 port facilities that possess more than 5 million square feet of space. STG also leverages its 65 inland relationships to provide last-mile delivery in metropolitan areas.
“Once combined, the STG network will be able to handle a container from the instant it’s ready at a port or customer facility to the moment each individual shipment arrives at its final destination, all the while providing customers full visibility and a single source of accountability,” STG CEO Paul Svindland reportedly said.
The XPO-STG deal came with an official announcement on March 25. Just days later, XPO earned VETS Indexes Recognized Employer status for 2022. The freight transportation giant was designated a leader in hiring military service members and dubbed a bronze-level Military Friendly Employer by Viqtory, a veteran-owned business connecting veterans with employers.
“XPO’s business practices demonstrate an outstanding commitment to the military community,” managing director of VETS Indexes George Altman reportedly said. “One of the best ways to support veterans is to connect them with fulfilling careers.”
VETS Indexes Employer Awards are based on categories that include veteran job candidate recruiting and hiring, veteran employee development and retention, veteran-inclusive company policies and culture, support for members of the National Guard and Reserves, and military spouse and family support.
The Connecticut outfit holds a global network of 50,000 shippers through 727 locations and 41,000 employees. The organization’s North American less-than-truckload operations generate upwards of one-third of its annual revenue and will reportedly remain in the hands of the existing management team.
Sources: ttnews.com, globalnewswire.com, landline.com
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