GXO Receives UK Regulatory Clearance for Acquisition of Clipper Logistics PLC
U.K. Competition and Markets Authority completes review
Combination will accelerate GXO’s growth opportunities and enhance value for all stakeholders
GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, announced that it has received unconditional regulatory clearance from the U.K. Competition and Markets Authority (CMA) for its acquisition of Clipper Logistics plc (Clipper). On May 24, 2022, GXO completed its offer however both companies continued to be run independently pending completion of the regulatory review.
GXO Chief Executive Officer Malcolm Wilson said, “GXO and Clipper are both industry leaders and together, we’re even stronger. As one company, we expect to accelerate growth by expanding our geographic presence in key markets and verticals, bolstering our roster of blue-chip customers and enhancing the breadth of innovative warehouse capabilities we provide.”
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Prior to the acquisition, GXO operated more than 900 facilities globally totaling approximately 200 million square feet with 120,000 team members. With Clipper, GXO gains more than 50 sites, 10 million square feet, 10,000 team members and adds geographic presence in Germany and Poland, in the life sciences sector as well as expertise in premium services, including reverse logistics and repairs, which are key growth areas for GXO.
Wilson added, “We share a commitment to ESG, providing an exceptional customer experience and harnessing technology to improve efficiency, productivity and employee safety. Being a great fit culturally will underpin our future success and make for a seamless integration.”
GXO expects to realize significant productivity opportunities and cost synergies within two years from transaction close. The integration process will begin promptly and progress through the latter part of the year while ensuring a successful holiday peak season for customers.