By Kristin Broughton
XPO Logistics Inc. named a finance chief for its supply-chain business ahead of a planned spinoff in the second half of this year.
XPO said in December it would split itself in two, severing its logistics unit, which provides supply-chain services such as warehousing and e-commerce, from its trucking and freight brokerage business. The transaction, which is supposed to bolster the two companies' share prices, is expected to close in the second half of this year. The new company, which will operate as GXO Logistics Inc., will be based in London, according to a spokesman.
Baris Oran will serve as chief financial officer of GXO, the stand-alone logistics company, Greenwich, Conn.-based XPO said Tuesday. Mr. Oran will join the company in May, ahead of the planned spinoff, as CFO of XPO's logistics division. Mr. Oran for the past five years led the finances of Sabanci Holding, a Turkish conglomerate with subsidiaries in financial services, energy and other industries.
The appointment is the latest move by XPO to form a leadership team for its soon-to-be independent logistics business. The company in January named Malcolm Wilson, currently chief executive of its European logistics division, as CEO of GXO. It is also conducting searches for other senior roles and board members, a spokesman said.
XPO's logistics business -- which serves customers such as food manufacturer Nestlé SA, furniture maker IKEA and Boeing Co. -- has benefited from the rush to e-commerce over the past year. The logistics division generated about $6.2 billion in revenue in the 2020 calendar year, up 1% from the prior year. It accounted for 38% of XPO's revenue last year.
The planned spinoff follows a strategic review in which XPO looked at whether to sell or spin off one or more business units to make it easier for investors to compare the performance of its businesses against industry peers. XPO shareholders will own stock in both companies once the transaction closes.
GXO expects to gain from growing e-commerce as well as rising automation and outsourcing in the logistics industry, Mr. Oran said. "The company is going to be well-positioned to benefit from three of the most powerful trends happening right now," he said.
Jennifer Smith contributed to this article.
(END) Dow Jones Newswires