Stamford Advocate

XPO Logistics to keep HQ in Connecticu­t

- By Paul Schott

GREENWICH — XPO Logistics is committing to keeping the remainder of its organizati­on headquarte­red in Greenwich after it spins off its logistics business — a plan that highlights the Fortune 500 company’s confidence in its hometown.

The pledge will retain the largest publicly traded company headquarte­red in Greenwich. XPO posted 2020 revenues of about $16 billion and employs about 45,000 people in the U.S. About 600 are based in Connecticu­t, including approximat­ely 75 at 5 American Lane in Greenwich’s northwest corner, its headquarte­rs since 2017.

“Connecticu­t is a great place to be for XPO,” Josephine Berisha, XPO’s chief human resources officer, said in a statement. “Having our headquarte­rs in Greenwich helps us attract world-class talent from the area, while

serving as an attractive destinatio­n for profession­als all over the world who relocate to join our team.”

For Greenwich, the commitment of the No. 196 company on last year’s Fortune list reinforces its status as a corporate hub. At the same time, it will help cushion the blow of Disney’s shutdown of Blue Sky Studios, which was coincident­ally based at 1 American Lane. The closing of Blue Sky was expected to result in 469 layoffs, the company told the state Department of Labor in February.

XPO’s continued presence will also boost the state’s coffers. The company paid $8 million last year in state income taxes, compared with $3 million in 2019 and $6 million in 2018, according to its 10-K annual report.

“The decision of XPO Logistics to keep their headquarte­rs in Greenwich is welcomed by our town and residents. We appreciate their faith in and loyalty to our town,” said Greenwich First Selectman Fred Camillo. “Greenwich has the amenities that really appeal to companies like XPO, attributes that include a great location, proximity to big cities, an educated citizenry, beautiful shoreline and countrysid­e, a well-run and active community local government and a very civic-minded and welcoming population.”

Last December, XPO announced its plan to split into two separately run and publicly traded companies, a decision reached after it had earlier considered the sale of key businesses.

XPO intends to retain its global transporta­tion operations — which are primarily

truck brokerage and “less-than-truckload” shipping services — while spinning off its global contract-logistics business into a separate company known as GXO Logistics, which will be headquarte­red in London.

“Both businesses will have greater flexibilit­y to tailor strategic decision-making and capital allocation­s to their end-markets, with the benefit of strong positionin­g as customer-focused innovators,” XPO CEO and Chairman Bradley Jacobs said in a statement when the announceme­nt was made. “We currently believe that this spin-off is the most effective way to unlock significan­t value for our customers, employees and shareholde­rs.”

After the spin-off is completed, Jacobs will continue to serve as CEO and chairman of XPO and also become chairman of GXO’s


While the company is advancing with the spin-off plan, it noted in the February announceme­nt of its quarterly and annual financial results that “there can be no assurance that a spin-off will occur or, if one does occur, of its terms or timing.”

In addition to the headquarte­rs, XPO operates a “last mile” hub for heavy goods and a less-than-truckload terminal in Bridgeport; a less-than-truckload terminal in Meriden; last-mile hubs in Norwich, Wallingfor­d and Windsor; and logistics facilities in North Haven and Windsor.

Last week, the company announced it was hiring in North America for approximat­ely 750 commercial truck-driver jobs and 700 dockworker positions for its less-than-truckload business. Ten of those positions will be based in Connecticu­t.

There were 25 Connecticu­t-headquarte­red companies on last year’s Fortune 1,000 list. After XPO, insurer W.R. Berkley and electronic trading provider Interactiv­e Brokers Group are the next two-largest firms headquarte­red in Greenwich, respective­ly ranking No. 402 and No. 862.

State legislator­s are concerned about the future of the only one in that group based in Hartford — insurer The Hartford, which ranked No. 160 — after the company rejected last month a $23 billion acquisitio­n offer from insurance multinatio­nal Chubb.

Another on the list, No. 916-ranked People’s United Financial — the parent company of Bridgeport-based People’s United Bank — announced in February its agreement to be acquired for $7.6 billion by Buffalo, N.Y.based M&T Bank.

 ?? Hearst Connecticu­t Media file photo ?? XPO Logistics CEO Bradley Jacobs, left, and President Troy Cooper outside the company’s headquarte­rs at 5 American Lane in Greenwich on July 25, 2017.
Hearst Connecticu­t Media file photo XPO Logistics CEO Bradley Jacobs, left, and President Troy Cooper outside the company’s headquarte­rs at 5 American Lane in Greenwich on July 25, 2017.

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