GXO Cleared to Acquire Wincanton, Taps DHL Vet as New CEO
GXO got the green light to complete its acquisition of fellow logistics services provider Wincanton, but it will have to sell off the U.K.-based company's dedicated grocery warehousing unit to do so.
In a final report issued Thursday, the U.K.'s Competition and Markets Authority (CMA) cleared the $965 million transaction after a yearlong probe into the deal. As part of the clearance, GXO says it will divest 'a small number' of Wincanton grocery contracts in the U.K.
More from Sourcing Journal
Chain Reaction: Michael Goldman of Caru Containers on Why 'Sourcing Diversity is Paramount'
$10B Trump-Approved 'Green Corridors' Project to Drive Efficiency in US-Mexico Trade
Forward Air Chairman Ousted, Potential Sale Appears in View
A day after the CMA approval, GXO unveiled it found its next CEO to succeed chief executive Malcolm Wilson, who is retiring later this year.
Patrick Kelleher, who most recently served as CEO for top competitor DHL Supply Chain North America, will take on the role starting Aug. 19. Kelleher had worked his way up through DHL Group's ranks since joining the company in 1992, before assuming his leading role at the North American supply chain division last July.
During his time at the contract logistics provider, Kelleher had led strategic initiatives spanning transportation and supply chain planning, oversaw DHL's deployment of advanced robotics throughout the warehouse, including the Boston Dynamics Stretch robot and the Locus Robotics LocusBots.
Kelleher also presided over four M&A transactions in the past year alone, including May's acquisition of retail logistics specialist IDS Fulfillment and the deal to acquire the reverse logistics division of Inmar Intelligence.
'Patrick is a world-class operator with the relevant experience to lead GXO through its next phase of growth,' said Brad Jacobs, chairman of GXO's board of directors, in a statement. 'His proven track record and deep expertise in engineered solutions, automation, and cutting-edge contract logistics make him uniquely qualified to drive value for our customers and shareholders. We're thrilled to welcome him as our new CEO.'
In February, at the Manifest supply chain and logistics conference in Las Vegas, Kelleher told Sourcing Journal that he believed the contract logistics market is primed for growth, namely due to the ongoing demand for warehouse space.
'It's about being thoughtful around decisions that are made in standing up additional warehousing capacity. That is an inflexible asset in terms of being able to move from one location to another,' Kelleher said. 'We need to be picking the right location, making sure that is data informed, working with the breadth of customers that we have to have a good view of the different markets that we're participating in, or should be participating in—to make those long-term investments.'
The logistics provider also raised its 2025 guidance on Thursday, including expected synergies of the Wincanton deal, which remains subject to integration in the third quarter.
Organic revenue growth is now forecast to be between 3.5 percent and 6.5 percent, up from a previous range of 3 percent to 6 percent. Adjusted EBITDA is expected to be in the range of $860 million to $880 million, increase from the prior scope of $840 million to $860 million.
'Across our operations, we are seeing better than expected volumes and accelerated productivity gains in existing operations and new startups,' said Wilson.
The combined news sent GXO's stock up more than 11 percent in Friday morning trading.
As for the Wincanton deal, the CMA still has to approve a buyer for the dedicated grocery warehousing services, which refer to facilities that are used exclusively by a single customer.
'Warehousing services play a crucial role in ensuring the seamless movement of goods across the U.K., allowing our supermarkets to maintain well-stocked shelves with thousands of items we buy every day,' said Richard Feasey, chair of the CMA's independent inquiry group. 'Healthy competition in this market is key to managing costs for supermarkets and grocers and improving their performance—ultimately ensuring consumers pay the best possible prices for products in stores.'
With the acquisition cleared, teams at GXO and Wincanton are permitted to collaborate on specified ongoing aerospace and defense proposals in the U.K. effective immediately. No further regulatory reviews are required.
GXO has been busy as it awaited the ruling from the CMA.
Earlier this month, the company also introduced an enhanced version of its multi-tenant warehousing solution GXO Direct to U.S. customers. Debuting in North America in 2018, GXO Direct is designed to enable retail customers to use the company's network of warehouses to position goods closer to end consumers for one-day delivery.
The newest update integrates service capabilities GXO acquired from the $181 million acquisition of e-commerce order fulfillment platform PFSweb, including high-touch contact center services, secure payments and fraud protection and distributed order orchestration systems.
In May, the company also extended its partnership with supply chain solutions provider Blue Yonder to power its warehouse management system (WMS) capabilities.
Errore nel recupero dei dati
Effettua l'accesso per consultare il tuo portafoglio
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
33 minutes ago
- The Hill
Trump: ‘Maybe I'll have to change my mind' about firing Powell
President Trump on Friday floated the possibility of firing Federal Reserve Chairman Jerome Powell as part of his latest round of intense criticism of the leader of the central bank over its decision not to lower interest rates. Trump, in a lengthy post on Truth Social, railed against Powell, labeling him a 'numbskull,' 'a dumb guy,' 'and an obvious Trump Hater.' Trump appointed Powell to the post in 2017. 'I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I've tried it all different ways,' Trump posted. 'I've been nice, I've been neutral, and I've been nasty, and nice and neutral didn't work!' The post included a graphic showing how the United States' central bank rate compared to other nations. 'I don't know why the Board doesn't override this Total and Complete Moron!' Trump added 'Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly!' Powell's term ends in 2026. He said last November he would not step down if Trump asked, and that it is 'not permitted under the law' for the president to fire or demote him or any of the other Fed governors with leadership positions. Trump in April said he had no intention of firing Powell, though he has in recent days ratcheted up his criticism amid frustration over the Fed's handling of interest rates. Fed officials kicked off the year expecting to continue cutting interest rates as inflation drifted back toward its ideal annual level of 2 percent. But the bank has held off through the first half of 2025 amid the uncertainty driven by Trump's tariff plans. Powell reiterated his call for patience Wednesday, after the Fed kept rates steady once again.
Politico
42 minutes ago
- Politico
‘We can't wait forever': GOP frustrated but unwilling to act on Trump's TikTok extension
President Donald Trump's latest move to keep TikTok alive is yet again frustrating congressional Republicans, many of whom object to China's continued involvement in the popular app but just want to be done with the whole drama. 'Not my favorite thing,' Sen. Josh Hawley (R-Mo.), along-time proponent of the ban, deadpanned, when asked about the president's plan to issue another extension. He spoke a day before the White House confirmed Trump signed a 90-day suspension of enforcement of the law requiring TikTok to divest from ByteDance, its China-based parent company, throwing another lifeline to the short-form video app. By Friday, some House lawmakers registered a note of resigned irritation. The extension — Trump's third since the law went into effect on Jan. 19 — is a unilateral decision not envisioned in the bipartisan law passed by Congress and upheld last year by the Supreme Court. Rep. Darin LaHood (R-Ill.), a member of the House Intelligence and China committees, told POLITICO. 'The national security concerns and vulnerabilities are still there, and they have not gone away. I would argue they've almost become more enhanced in many ways.' But Trump's extension of the TikTok law largely boxed out Republicans in both chambers who have shown little inclination — beyond stern words — to prevent him from making these postponements almost routine. Many GOP lawmakers saw themselves as granting the president space to cut a promised deal while the White House deals with urgent priorities, like trade negotiations and the Israel-Iran conflict. 'In light of everything going on, I think he did the right thing,' Sen. John Kennedy (R-La.), a China hawk who voted for the ban, told POLITICO of Trump. 'I have concerns about all kinds of things — that [the extension] is on the list — but it's not at the top of the list.' Though Trump has promised his TikTok negotiations areclosely tied to trade talks with China, Treasury Secretary Scott Bessent testified last week to a Senate panel that TikTok's sale was not currently a part of the negotiations with China, raising a further potential obstacle to Trump inking a deal in the near future. Sen. Lindsey Graham (R-S.C.), a close ally of the president and longtime national-security hawk said earlier in the week: 'The sooner we get that issue solved, the better,' without offering any ideas for further enforcement. 'I just want finality,' Senate Judiciary Chair Chuck Grassley (R-Iowa) told POLITICO. 'I want some certainty and just know that the Congress isn't being played when we make a decision [that the app] be sold.' Another member of the House China Committee, Rep. Zach Nunn (R-Iowa), told POLITICO, 'No more extensions. It's time to follow through.' Rep. Dan Newhouse (R-Wash.), also a member of the China panel, noted in a post on X Thursday the law only allows one extension of the compliance deadline, adding, 'I was proud to support the ban of TikTok and believe the law should be implemented as written.' With their comments, the lawmakers echoed House China Chair John Moolenaar (R-Mich.), who in early June called for the U.S. to 'let [TikTok] go dark' to bring China to the table to negotiate. He reiterated that stance on Friday. 'Delays only embolden the Chinese Communist Party,' Moolenaar said in a statement to POLITICO. 'I urge the administration to enforce the law as written and protect the American people from this growing national security threat.' Still, observers say Republicans are not exercising their leverage to demand the White House enforce the law they helped write, for example by withholding funding or congressional oversight hearings. 'I keep reading that Republicans are 'frustrated' and 'impatient' about their TikTok law being ignored, but they should stop complaining to reporters and take it up with Trump,' said Adam Kovacevich, founder and CEO of the pro-tech Chamber of Progress. Among the Republicans being undercut by the president is his own secretary of state. Marco Rubio — who as senator was one of the loudest critics of TikTok's ties to China, and a huge backer of the app's ban — has been conspicuously silent as Trump has repeatedly granted more time to strike a deal for its sale. 'You have to decide what's more important, our national security and the threat that it poses to our national security,' Rubio told POLITICO in March 2023, as Congress was considering a ban. 'You have to weigh that against what you might think the electoral consequences of it are. For me, it's an easy balancing act. I mean, there is no balance. I'm always going to be for our national security.' A spokesperson for Rubio at the State Department did not respond to a request for comment. Democrats — even those who support keeping TikTok online — say Trump's approach is the wrong one. 'These endless extensions are not only illegal, but they also put TikTok's fate in the hands of risk-averse corporate shareholders,' Sen. Ed Markey (D-Mass.) told POLITICO in a statement. 'This is deeply unfair to TikTok's creators and users. I'm prepared to work towards a solution, but Trump isn't coming to the table.'
New York Post
an hour ago
- New York Post
SoftBank pitches chip giant TSMC on building $1 trillion AI hub in US: report
SoftBank CEO Masayoshi Son is pitching Taiwan Semiconductor Manufacturing Company on a massive $1 trillion complex in the US to build robots and artificial intelligence, according to a report. The giant robotics center would be based in Arizona, a version of the production hub seen in the Chinese city of Shenzhen that could help bring manufacturing back to the US, sources told Bloomberg. It comes as President Trump has been calling for an all-hands approach to bringing manufacturing opportunities to the US, especially by tech companies and automakers. 3 SoftBank's CEO Masayoshi Son speaking during a White House event as President Trump looks on. KEN CEDENO/POOL/EPA-EFE/Shutterstock Son is seeking out TSMC invest $165 billion in the US and has opened its first Arizona factory – as a partner, according to the report. It's unclear what role Son sees for the Taiwanese chip giant, which makes Nvidia's most advanced chips, and if the company would even be interested in the project. TSMC declined to comment. Codenamed 'Project Crystal Land,' the complex is a clear attempt not only to advance artificial intelligence but to ensure a lasting legacy for Son, who has often talked down his past accomplishments and abandoned projects midway, sources told Bloomberg. The ambitious, one-of-a-kind facility would require support from the Trump administration. SoftBank officials have spoken with federal and state officials, including Commerce Secretary Howard Lutnick, to discuss possible tax breaks for firms building factories or investing in the complex, sources told Bloomberg. Son is also speaking with major tech companies as possible investors, like South Korea's Samsung. SoftBank, Samsung and the White House did not immediately respond to The Post's requests for comment. 3 Masayoshi Son is reportedly seeking out TSMC as a partner in the Arizona project. REUTERS Son's company has invested heavily in ChatGPT maker OpenAI, recently leading a $40 billion funding round for the Sam Altman-led firm as the two seek to raise hundreds of billions of dollars to fund large data centers in the US. These data centers are crucial to the artificial intelligence industry, which requires vast amounts of power and large storage capabilities. SoftBank's campaigning process for the Arizona complex could signal that its money-raising efforts alongside OpenAI are proceeding at a slower pace than they had anticipated, according to the report. Son has created a list of companies that might take part in the Arizona manufacturing hub, like automation company Agile Robots SE, sources said. 3 President Trump has said he wants to bring manufacturing opportunities back to the US. AP Meanwhile, SoftBank is exploring project financing options for Stargate, its $500 billion initiative to build data centers in the US with OpenAI and Oracle. This financing method could allow SoftBank to raise funding on a project-by-project basis, which is easier than gathering a large sum of money upfront. The same process could potentially be used for Project Crystal Land, according to the Bloomberg report. These plans are still preliminary and could change, sources told the news outlet.
