XPO Logistics Getting $700 Million for Acquisitions

Freight transportation services provider XPO Logistics reached an agreement earlier this month where it will receive a total of $700 million to use for unspecified acquisitions.

PSP Investments, along with GIC and Ontario Teachers' Pension Plan will invest a total of $700 million.

The transaction, expected to settle on September 17, provides for the sale of newly issued common stock and preferred stock to the investors. Upon approval by the company's shareholders, the preferred stock will be converted into common stock and the investors will hold approximately 22% of XPO's common stock.

XPO said in light of this transaction and the expected acceleration of its growth plans, it has raised its 2017 financial targets to approximately $9 billion of revenue and $575 million of earnings before interest, taxes, depreciation and amortization, up from previous targets of $7.5 billion and $425 million, respectively.

The Connecticut-based XPO Logistics provides freight brokerage, expedited transportation and freight forwarding services.

The Public Sector Pension Investment Board, also known as PSP Investments, manages the pension funds of the Canada’s public service workers, the Canadian Forces and the Royal Canadian Mounted Police,

GIC manages Singapore’s foreign reserves and has investments in over 40 countries.

The Ontario Teachers' Pension Plan administers pensions of 307,000 active and retired teachers in Ontario, Canada.

In July XPO reported it lost nearly $14 million dollars during the second quarter of the year, down from more than $17 million a year earlier, while it also announced its most recent purchase in a string of recent acquisitions.