GXO Logistics, a provider of logistics services with a market value of roughly $6 billion, is exploring a potential sale after receiving takeover interest, according to a person familiar with the matter.
GXO, which was spun off from trucking company XPO in 2021, is working with a financial advisor to field acquisition interest from suitors, which include rival logistics providers, the source said, requesting anonymity as the discussions are confidential.
It has not made a final decision to proceed with a sale, and it is possible that the talks may not result in a deal, the source added.
A spokesperson for the Greenwich, Connecticut-based company declined to comment.
GXO’s shares jumped more than 8% on the news in trading after the bell on Wednesday.
GXO is one of the world’ largest providers of supply chain management tools. Its services include AI-powered robotics, transportation, warehousing, and logistics for industries such as aerospace & defense, e-commerce, healthcare, and consumer packaged goods.
GXO has struggled as a publicly traded company, having lost more than a fifth of its market value since it was spun off from XPO.
Grappling with sluggish customer demand in the UK and Europe last year, its shares have fallen some 17% this year, underperforming a 6% drop in the S&P 500 Air Freight & Logistics index. The decline in its share price has helped make it an attractive acquisition target.
However, in recent quarters, GXO has witnessed an uptick in its fortunes as it has signed new customers. The company reported revenue growth of 19% to $2.85 billion in its most recent quarterly earnings report.
“Fundamentally, GXO’s long-term contract model provides a highly visible, predictable, and resilient financial profile. Under the surface, contract durations are lengthening and GXO’s expertise in robotics and AI is driving meaningful new business wins with a record sales pipeline that now sits at $2.3 billion,” Jefferies analysts said in an Aug. 6 note.
The company, which counts the likes of Apple, Nike, Nestle and Whirlpool among its customers, has more than 130,000 employees across more than 970 facilities.
