GREENWICH, CT— Freight transportation services provider XPO Logistics is looking to expand its business and a good portion of the $700 million invested is coming from some Canadians’ pension plans.
The Public Sector Pension (PSP) Investment board, GIC and the Ontario Teachers’ Pension Plan will invest a total of $700 million in XPO, which provides freight brokerage, expedited transportation and freight forwarding services.
PSP Investments manages pension funds of Canada’s public service workers, Canadian Forces and the Royal Canadian Mounted Police. GIC manages Singapore’s foreign reserves.
The transaction is expected to settle on Sept. 17 and XPO plans to use the money to fund future acquisitions.
XPO said in light of this transaction and the expected acceleration of its growth plans, it has raised its 2017 financial targets to about $9-billion of revenue and $575 million of earnings before interest, taxes, depreciation and amortization, up from previous targets of $7.5 billion and $425 million, respectively.
In July, XPO reported it lost nearly $14 million dollars during the second quarter of 2014, down from more than $17 million a year earlier. It also announced its most recent purchase in a string of recent acquisitions.
XPO has customers in the U.S., Mexico and Canada and is a big player in the last-mile delivery services and intermodal shipping.
