Chief Operating Officer, Xpo
Search every verified David Bates interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. In September 2020, XPO Logistics CEO Bradley Jacobs stated that the company was considering spinning off or selling up to four of its business units. Jacobs said the company's stock had performed well but was receiving a low valuation multiple as a diversified company, and that separating the units into smaller pure-play businesses could create more value. He specified that the company was not marketing its less-than-truckload (LTL) unit or the entire company, but was instead marketing its North American and European transportation and logistics businesses. Jacobs described the proactive process of holding auctions for each of the four units as the best way to create value in the stock.
“The company has the stock has performed very well it was the seventh best performing stock of the fortune 500 of the last decade but we're still getting a low multiple so as a diversified company the markets only giving us an eight or nine times multiple.”
“When you look at what we would get if we sold off or spun the four of our business units each one of those as a smaller pure-play would get a higher multiple so when you do the math objectively it creates more value by spinning off or selling those four business units.”
“We're not interested in selling LTL we're not marketing LTL and we're not marketing the whole company we're marketing those four businesses North American and Europe transportation and logistics.”
“What we're doing proactively I think is the best way to create a significant amount of value in the stock holding auctions and going through a professional process for each one of those four business units.”
XPO Logistics CEO Bradley Jacobs told "Mad Money" host Jim Cramer the company is looking to unlock value by breaking up the ...
Sign in to search the full transcript archive, filter by topic, and access every quote from David Bates.