XPO to acquire 28 facilities from bankrupt Yellow
GREENWICH — XPO, one of the world’s largest freight transporters, has agreed to acquire 28 service centers for a total of $870 million from bankrupt trucking company Yellow Corp.
XPO successfully bid for the service centers at auctions on Nov. 28, according to a filing submitted Tuesday by the Greenwich-based company to the Securities and Exchange Commission. The transaction follows Yellow’s bankruptcy filing in August, a decision that reflected years of financial struggles at the Nashville, Tenn.-headquartered company.
“The Yellow asset acquisition aligns with the company’s execution of its LTL 2.0 growth plan,” XPO said in the filing. LTL refers to less-than-truckload shipping, which allows multiple customers to ship goods in the same truck.
The filing added that the deal, “remains subject to various conditions, including, among others, the entry by the bankruptcy court of a sale order and the satisfaction of certain other closing conditions.”
In response to an inquiry from Hearst Connecticut Media, XPO declined to comment on the service centers’ locations. Yellow’s locations include facilities for its YPC Freight and New Penn businesses that are, respectively, located in Cheshire and Southington, according to its website.
XPO has approximately 23,000 employees in the U.S., including about 130 based across its headquarters in Greenwich and facilities in Bridgeport and Meriden.
In the third quarter of this year, XPO produced nearly $2 billion in revenues, up about 2 percent from the same period a year ago. That total included about $1.2 billion in revenues from North American LTL operations.
“In North American LTL, we’re improving every aspect of the business that impacts customer service and value creation,” XPO CEO Mario Harik said in a written statement about the third-quarter results.
Based on its 2022 revenues, XPO ranked No. 478 on this year’s Fortune 500 list of the largest corporations in the U.S.
XPO has undergone farreaching changes in the past couple of years, as the company has pursued its goal of becoming a “pure-play” LTL specialist. In 2021, it spun off GXO Logistics, which is now one of the world’s largest warehouse operators and also a Fortune 500 company. GXO is headquartered next door to XPO, in the same office complex in northwest Greenwich.
In November 2022, XPO completed the spin-off of its truck-brokerage business, which is now known as RXO and headquartered in Charlotte, N.C. In March 2022, XPO sold its intermodal shipping business for $710 million.