XPO to Keep Con-way Truckload Unit It Had Considered Sellingby
XPO Logistics Inc. will keep a trucking unit acquired with the $3 billion purchase of Con-way Inc. last year after weighing whether to sell it.
Monday’s announcement made official what Chief Executive Officer Bradley Jacobs had suggested in an interview with Bloomberg News in January when he said he was inclined to halt the sale after offers for the business were insufficient. In November, he said XPO had received “serious interest” from potential buyers.
“In deciding to retain this business, the company considered the value that shippers place on owned truckload capacity, particularly in U.S.-Mexico cross-border lanes, and the opportunity to improve the utilization of the assets,” XPO said in a corporate filing.
The truckload unit is profitable and has annual earnings before interest, taxes, depreciation and amortization -- a profit measure known as Ebitda -- of $100 million, Jacobs said in the Jan. 28 interview. About 35 percent of its business comes from cross-border trucking with Mexico.