XPO Logistics announced Monday the planned spinoff of its brokerage unit, RXO, has received board approval. XPO also announced dates for the transaction and introduced a new board of directors.
Upon separation of the companies, current XPO Chairman and CEO Brad Jacobs will be the executive chairman of XPO’s board. Mario Harik, current chief information officer and head of XPO’s less-than-truckload unit, will succeed Jacobs as CEO and will also become a board member. The eight-person board will include six independent members.
RXO’s board of directors was named at the end of September. Jacobs will be the nonexecutive chairman of RXO.
“I’m extremely pleased that our spin-off has board approval and is moving toward a November 1 distribution for our shareholders,” Jacobs stated in a news release. “XPO and RXO will each benefit from a strong board of directors who bring valuable perspectives to the growth strategy. I look forward to continuing to collaborate with Mario and his team to create significantly more value in XPO with the board’s support.”
Shareholders will receive one share of RXO for each share of XPO owned on the record date, which is Oct. 20. Shares of RXO are expected to be fully distributed to XPO shareholders of record on Nov. 1. The distribution does not require shareholder approval. Shares of both companies will trade independently on the New York Stock Exchange.
RXO, a digital freight brokerage platform, will be the fourth-largest broker of truckload services in North America, boasting a network of 100,000 independent carriers and 1.5 million trucks.
XPO will be one of the largest pure-play LTL carriers in the U.S. XPO plans to divest its European transportation unit at a later date.
In a separate news release Monday, XPO announced Carl Anderson has been appointed CFO at XPO effective Nov. 8. He will replace Ravi Tulsyan, who joined XPO as treasurer in 2016. Most recently, Anderson served in the same capacity at heavy-truck OEM and aftermarket parts supplier Meritor, which was acquired by diesel-engine maker Cummins (NYSE: CMI) in August.
“Carl is a strong B2B finance leader with an operational orientation and a long track record of delivering on goals,” Jacobs said. “His broad executive experience in the commercial vehicle sector is valuable context for his role at XPO, where we have one of the largest LTL fleets in North America.”
Tulsyan will leave the company following the transition.
“Ravi has made many vital contributions to XPO’s success over the last six years. He was instrumental to our GXO spin-off in 2021, and more recently led our finance organization through the RXO spin-off process and the sale of intermodal,” Jacobs added. “We wish Ravi every success, and we’re pleased that he’ll be available to Carl after the separation to support a seamless transition.”
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