XPO board approves spin-off of brokerage business

Trucking news and briefs for Wednesday, Oct. 12, 2022:

XPO board approves of brokerage spin-off

XPO Logistics (CCJ Top 250, No. 7) on Monday announced that its board of directors approved the previously announced separation of its tech-enabled brokered transportation platform through the distribution of all of the outstanding shares of common stock of its wholly owned subsidiary, RXO, Inc., to holders of XPO common stock.

The spin-off, once complete, will create two companies with distinct investment identities and clearly delineated value propositions in their respective industries. RXO will be the fourth-largest broker of full truckload freight transportation in the United States, with a proprietary digital freight marketplace, access to massive truckload capacity and complementary brokered services for managed transportation, last mile and freight forwarding.

XPO will continue to provide less-than-truckload transportation in North America, with a European transportation business that the company plans to divest.

“I’m extremely pleased that our spin-off has board approval and is moving toward a November 1 distribution for our shareholders,” said Brad Jacobs, chairman and chief executive officer of XPO Logistics. “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 [Harik] and his team to create significantly more value in XPO with the board’s support.”

The appointment of a new slate of XPO board members has also been finalized, as follows, effective with the separation. Six of the eight directors are independent.

Brad Jacobs will continue to lead the board, and Johnny C. Taylor Jr., Allison Landry, Jason Aiken and Michael Jesselson will remain as directors. Jacobs will serve as executive chairman, as previously announced. Taylor will serve as lead independent director and will chair the Compensation Committee. Landry will serve as vice chairman and will chair the Nominating, Governance and Sustainability Committee. Aiken will chair the Audit Committee.

Three additional directors have been named to the XPO board:

  • Bella Allaire is executive vice president of technology and operations with Raymond James Financial, and the former chief information officer of UBS Wealth Management Americas.
  • Mario Harik will become XPO’s chief executive officer upon completion of the spin-off. He currently serves as president, less-than-truckload – North America, and chief information officer.
  • Irene Moshouris is senior vice president and treasurer of United Rentals, and formerly served in finance management roles with Avon Products and GTE Corporation.

[Related: XPO’s Jacobs leaving CEO post, Harik assuming role]

Great Dane recalling nearly 2,500 trailers for brakes issue

Great Dane Trailers is recalling approximately 2,439 model year 2023 Everest reefer and Champion dry van trailers in which the retaining clip in the brake pad retaining assembly may be loose or could detach, loosening the brake pad.

According to National Highway Traffic Safety Administration documents, the affected trailers are equipped with Holland axles provided with Haldex disc brakes manufactured at the Haldex Monterrey Facility starting with initial production Feb. 11, 2021, and ending when containment was implemented on Sept. 15, 2022.

The recall states that a retaining clip or bracket that detaches can damage the brake pad, reducing brake performance, damage a tire valve, causing a flat tire, or become a road hazard, increasing the risk of a crash.

Great Dane dealers will inspect and if necessary, repair the spring bracket assembly, free of charge. Owners can contact Great Dane’s customer service at 1-877-369-3493. NHTSA’s recall number is 22V-734.

Geodis expands U.S. presence with acquisition

Global transport and logistics firm Geodis announced it has completed its acquisition of U.S.-based Need It Now Delivers following regulatory approvals.

Geodis said the acquisition significantly expands its presence in the U.S., specifically in the areas of contract logistics and final-mile delivery and strengthens its end-to-end freight network domestically and internationally.

Based in Keasbey, New Jersey, Need It Now Delivers operates a major freight network in the United States, with a strong presence in the East, including more than 65 company locations and 300 interconnected distribution points.

Need It Now Delivers features a workforce of more than 2,000 employees and serves more than 1,600 customers across a variety of high-growth sectors, including apparel, electronics, home furnishings, automotive products and medical supplies. In addition to omnichannel and final-mile capabilities, Need It Now Delivers offers logistics services including white glove home delivery, direct-to-consumer parcel delivery, contract logistics and same day logistics.

“The completion of the Need It Now Delivers acquisition will accelerate our continued growth in the U.S., which has become an essential market for Geodis, as we remain committed to building a fully integrated network of transport and logistics hubs globally,” said Marie-Christine Lombard, CEO of Geodis. “This acquisition allows Geodis to expand our offerings in a consolidating market and solidify our position as one of the world’s top 10 leading logistics providers.”

Geodis customers will now have access to expanded transportation management and warehousing capabilities in the U.S., while Need It Now Delivers clients will have the opportunity to bolster their global supply chains with new access to Geodis’s international freight forwarding and contract logistics networks for a comprehensive solution.