Featured image courtesy of GXO Logistics website

GXO Logistics is exploring a potential sale after receiving takeover interest, according to Bloomberg and Reuters, both citing “people familiar with the matter.”

The Greenwich, CN-based company is a logistics provider that spun off from trucking provider XPO Logistics in 2021. It provides warehousing, distribution, order fulfillment and a range of other supply chain services.

The reports said that the company — valued at approximately $6.1 billion as of Oct. 9 — is working with financial advisors to assess its options. GXO has not made a final decision and could still choose to remain independent, but its stock rose 8.3% in premarket trading following the reports, marking its largest increase since December 2022.

GXO has faced challenges since its 2021 spinoff from XPO, losing 22% of its market value. The company saw a decline in customer demand in Europe and the UK which contributed to a 17% drop in GXO’s stock this year, the reports added. Despite these struggles, the company saw a 19% revenue increased to $2.85 billion in its latest quarterly report

Jeffries analysts said in an Aug. 6 comment that GXO’s long-term contract models provide financial stability, with control durations increasing and AI-driven services helping the company secure new business. The company’s sales pipeline has grown to a record $2.3 billion.

XPO was formed by serial entrepreneur Brad Jacobs, who also formed building materials distribution platform QXO in late 2023.