Logistics Company Case Study
XPO Logistics, Inc. (XPO)
BRADLEY S. JACOBS is the Chief Executive Officer of XPO Logistics, Inc. A career CEO, he has led two public companies. United Rentals, Inc., which he cofounded in 1997; and United Waste Systems, Inc., founded in 1989. Mr. Jacobs served as Chairman and CEO of United Rentals for the company's first six years, and as Executive Chairman for an additional four years. He served eight years as Chairman and CEO of United Waste Systems. Previously, Mr. Jacobs founded Hamilton Resources (UK) Ltd. and served as its Chairman and Chief Operating Officer. This followed the cofounding of his first venture, Amerex Oil Associates, Inc., where he was Chief Executive. Mr. Jacobs is a member of the board of directors of the Beck Institute for Cognitive Behavior Therapy.
SECTOR - TRANSPORTATION (AWJ601) TWST: Please start by introducing our readers to XPO Logistics with a brief company history and an overview of its operations today. Mr. Jacobs: XPO Logistics is a non-asset-based transportation services provider in the logistics industry. We don't own any trucks, airplanes or ships. We're a middleman between shippers and carriers who outsource their logistics to us as a third-party broker. We reported $177 million of revenue in 2011, and we expect to reach our target of a $500 million revenue run rate by year end. Since taking control of XPO last September, we've put a strategy in place to grow the company to several billion dollars in revenue over the next few years with brokerage as our main focus. Our strategy has three prongs, all of which are in progress. Number one is acquisitions. We'll continue to acquire attractive truck brokerage operations that are scalable. Number two is cold starts. We'll continue to open greenfield locations, mainly truck brokers, throughout North America. And third, we are optimizing our existing operations. In eight months, we've completed two acquisitions and 12 cold starts, seven of which are in truck brokerage, and we've
BRADLEY S. JACOBS is the Chief Executive Officer of XPO Logistics, Inc. A career CEO, he has led two public companies. United Rentals, Inc., which he cofounded in 1997; and United Waste Systems, Inc., founded in 1989. Mr. Jacobs served as Chairman and CEO of United Rentals for the company's first six years, and as Executive Chairman for an additional four years. He served eight years as Chairman and CEO of United Waste Systems. Previously, Mr. Jacobs founded Hamilton Resources (UK) Ltd. and served as its Chairman and Chief Operating Officer. This followed the cofounding of his first venture, Amerex Oil Associates, Inc., where he was Chief Executive. Mr. Jacobs is a member of the board of directors of the Beck Institute for Cognitive Behavior Therapy.
SECTOR - TRANSPORTATION (AWJ601) TWST: Please start by introducing our readers to XPO Logistics with a brief company history and an overview of its operations today. Mr. Jacobs: XPO Logistics is a non-asset-based transportation services provider in the logistics industry. We don't own any trucks, airplanes or ships. We're a middleman between shippers and carriers who outsource their logistics to us as a third-party broker. We reported $177 million of revenue in 2011, and we expect to reach our target of a $500 million revenue run rate by year end. Since taking control of XPO last September, we've put a strategy in place to grow the company to several billion dollars in revenue over the next few years with brokerage as our main focus. Our strategy has three prongs, all of which are in progress. Number one is acquisitions. We'll continue to acquire attractive truck brokerage operations that are scalable. Number two is cold starts. We'll continue to open greenfield locations, mainly truck brokers, throughout North America. And third, we are optimizing our existing operations. In eight months, we've completed two acquisitions and 12 cold starts, seven of which are in truck brokerage, and we've