Benzinga | Mar 18, 2021 09:18AM EDT

XPO Announces Logistics Spinoff GXO

XPO Logistics Inc. (NYSE:XPO) on Thursday introduced its planned spinoff, GXO Logistics Inc.

XPO announced that it has filed a confidential initial Form 10 with the U.S Securities and Exchange Commission for the stand-alone, with expectation for board approval in the second half of 2021.

"Today, we took an exciting step forward on our path to spinning off our logistics segment. The new company is called GXO -- three letters that stand for the game-changing opportunities we're bringing to the table for customers, employees and shareholders, with a nod to our XPO heritage. GXO will take this legacy into the future as an independent public company, with countless ways to deliver logistics at full potential," said Brad Jacobs, chairman and CEO of XPO Logistics, in the release.

In December, XPO announced its intent to spin off the logistics piece to create two pure-play industry leaders to focus separately on transportation and logistics. XPO has spent years investing in technology to capitalize on the growth of e-commerce and omnichannel retail, a logistics segment that is in high demand for digital capabilities and outsourced supply chain services.

With XPO's chief executive officer for Europe, Malcolm Wilson, taking the lead as the CEO of GXO, the company expects the spinoff will create long-term value for its stakeholders.

"The new company's brand identity captures the qualities that make us an industry leader -- our ability to deliver faster, leaner, smarter logistics for customers at lower cost, using advanced automation and data science," said Wilson. "I'm looking forward to leading our global team to the many new opportunities in our future."

The official name of the spinoff's transportation segment has yet to be disclosed.