Shares of XPO Logistics Inc XPO gained more than 13% Thursday after the global logistics provider said it's exploring strategic alternatives. CEO Bradley Jacob was a guest on Jim Cramer's "Mad Money" to offer more commentary.
XPO's 4 Units For Sale
XPO said in a Wednesday press release that it is evaluating a potential sale or spin-off of one or more of its business units. Despite being the seventh best-performing Fortune 500 stock over the past decade, shares of XPO are still trading at a discount to competitors.
Jacob said on "Mad Money" that the company isn't interested in selling the less-than-truckload business.
The four units being marketed include North America, Europe, transportation and logistics.
The industrial economy remains "less than robust," but could be bottoming soon, the CEO said. The e-commerce industry continues to grow "like gangbusters all across the globe" and across all four of XPO's businesses, he said.
Spin-Off 'Best Way' To Generate Value
Jacob said he won't comment on whether XPO has entered any discussions for an outright acquisition.
Instead, a focus on selling off individual units is the "best way" to generate value for investors through a "professional process" for each one of the four units, he said.
XPO said in its release it has no timetable nor can it offer any assurances of any specific outcome.
XPO shares were trading 12.03% higher at $92.88 at the time of publication.
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XPO Logistics Begins The Process Of (Maybe) Breaking Itself Up
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