XPO's LTL Freight Backdrop Softening but Downturn Not Surprising

XPO got its start in mid-2011, when entrepreneur Brad Jacobs led an equity investment in expedited freight brokerage firm Express-1 Expedited Solutions. Following the transaction, Jacobs launched an acquisition strategy targeting the asset-light U.S. highway brokerage industry. By mid-2013, XPO's focus evolved beyond truck brokerage and subsequent deals added heavy-goods last-mile delivery, intermodal, and contract logistics. 2015 marked an even larger shift, with the deal for Norbert Dentressangle (European contract logistics) and the purchase of less-than-truckload carrier Con-way. The latter thrust XPO into the asset-heavy trucking industry.