Brad Jacobs, the founder of XPO Inc. and GXO Logistics Inc., will step down as chairman of both companies at the end of this year. This puts an end to a remarkable and influential career in the international logistics sector. Jacobs remained chairman for four years after he stepped down as CEO of XPO and after the split that created GXO.
The two companies he built are today among the largest players in contract logistics and road transport in the United States and Europe. XPO focuses heavily on less-than-truckload (LTL) services, making it one of the top five in the US. The position is less dominant in Europe, although the acquisition of the French Norbert Dentressangle in 2015 meant an important breakthrough in Western Europe. Jacobs recognized the growth potential of LTL transportation early and turned it into an important driver of XPO’s profitability.
GXO Logistics profiles itself as the largest pure-play contract logistics service provider, but operates in a highly competitive market with heavyweights such as DHL, DSV and Kuehne+Nagel. The company continues to grow through acquisitions, with the British Wincanton being the most recent addition.
XPO and GXO are currently valued at $17 billion and $6 billion, respectively. Jacobs’ approach was unusual for the sector. As a former oil trader, he previously developed a waste processing company through acquisitions. He applied the same aggressive growth strategy to XPO from 2011, which he built from scratch into a logistics powerhouse.
Jacobs is now focusing on a new project in construction products, again with a strong focus on growth through acquisitions. This new commitment seems to be an important reason for his resignation as chairman, although he remains a board member of both logistics groups.
