XPO Logistics considers sale of freight forwarding unit

BLOOMBERG reports:

XPO Logistics Inc. is considering a sale of its freight-forwarding unit as it continues to pursue divestitures, according to people with knowledge of the matter.

The unit could be valued in a deal at $400 million to $600 million, said one of the people, who asked not to be identified because they weren’t authorized to speak publicly. XPO is working with an adviser to run an auction process for the unit, said the people.

The unit, which performs tasks including documentation and supplying cargo insurance, is expected to attract interest from other logistics companies and private equity firms, the people said. The company hasn’t made a final decision to pursue a sale and its plans could change, they added.

A representative for XPO declined to comment. 

Greenwich, Connecticut-based XPO is looking to spin off by the end of the year its freight brokerage business, in which the freight-forwarding business sits. The company has already spun off its contract logistics unit and sold its intermodal business to STG Logistics Inc. for $710 million this year, according to a statement.