Shares of GXO Logistics (NYSE: GXO) were surging today after Bloomberg reported last night that the world's largest pure-play contract logistics company was the subject of takeover offers. The news represents a surprising shift for GXO as the company is known as an acquirer, having made several acquisitions since being spun off from XPO in 2021.
The stock was up 14.4% on the news as of 12:36 p.m. ET.
Image source: GXO Logistics.
GXO is in play
According to Bloomberg, the company is exploring a sale and is currently working with financial advisors. That decision comes after it received interest from multiple buyers.
An unnamed source said that GXO had received multiple high-quality inbound offers and that no decision has been made to sell the company. GXO could also decide not to sell itself and remain independent.
The move represents something of a strategic reversal for the company. It became a stand-alone company in 2021 under the logic that it would be better able to pursue acquisitions as its own company, and it has done that, buying Clipper Logistics, PFSWeb, and Wincanton since being spun off by XPO.
Will GXO be sold?
With GXO's market cap at $7 billion, any buyer of the company would likely be a large global shipper such as DHL or FedEx. GXO owns and operates roughly 1,000 warehouses across North America and Europe, many of which are highly automated.
It serves a wide range of customers, ranging from manufacturers to companies in the consumer electronics, food and beverage, and healthcare sectors.
Based on the stock's performance today, investors seem to like the idea of a sale. It's unclear what the premium would be, but the presence of multiple interested parties presents a possibility for a bidding war, which would favor investors.
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Jeremy Bowman has positions in GXO Logistics and XPO. The Motley Fool has positions in and recommends FedEx. The Motley Fool recommends GXO Logistics and XPO. The Motley Fool has a disclosure policy.
