XPO Logistics signaled Aug. 2 it is looking for additional acquisitions, and has set aside $8 billion toward that effort.
XPO, which acquired Con-way Inc. and Norbert Dentressangle in 2015, said in an Aug. 2 presentation for investors it was looking for “transportation and logistics companies with mission-critical offerings, an obsession with customer service and long-term customer relationships, where technology can make a difference.”
XPO added the main focus is on “North America and Europe in existing or complementary lines of business.”
The company’s expansion plan came as XPO said its net income in the second quarter rose almost 12% to $47.6 million on revenue of $3.76 billion. It spent about $6.5 billion on acquisition during 2015.
“The most notable growth came in last mile and contract logistics - two fast-growing parts of the supply chain where we hold leading positions in e-commerce,” CEO Bradley Jacobs said in a statement.
Separately, Jacobs told Reuters it could take at least a year to find its next deal, although XPO has held preliminary discussions with several firms.
The company, based in Greenwich, CT, also announced plans to nearly double the number of hubs for its last-mile delivery network.
After XPO announced a public offering of 11 million shares of common stock last month, research firm Stifel said XPO “continues to, as they have in the past, look at companies that are ‘not for sale.’ This was true for Norbert Dentressangle and Con-way.”
Stifel added it did not believe XPO was looking at Asia, and that “any impending deals to be at least a majority asset light, given the market’s reaction after their last two large deals.”