Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, September 22, 2023

Article Excerpt

GXO LOGISTICS INC., $57.85, symbol GXO on New York, is one of the world’s largest contract logistics providers. GXO aims to provide high-value-added warehousing and distribution, order fulfillment, e-commerce, reverse logistics (see below), and other supply chain services. GXO’s revenue is diversified across numerous markets and customers, including many multinational corporations. The company was spun off by its parent, XPO Logistics Inc. (symbol XPO on New York), in August 2021. XPO Shareholders received one new share of GXO for every share held in the parent. In May 2022, GXO completed the acquisition of Clipper Logistics plc for $1.3 billion. London Stock Exchange-listed Clipper was a logistics company that partners with a number of the U.K.’s biggest retail brands, as well as many operating in Europe. These include Asda, ASOS, SuperGroup, Marks & Spencer, John Lewis, British American Tobacco, and L’Oreal. Clipper is also strong in life sciences logistics, which includes pharmaceuticals and biotech. This gives GXO a presence in a profitable market where it has wanted…