Shares of GXO Logistics rise in pre-market as the group looks into takeover interest by Investing.com

Investing.com — Stocks in GXO Logistics (NYSE: ) rose more than 5 percent in U.S. premarket trading on Thursday following a Reuters report that the logistics services provider is exploring a possible sale after receiving takeover interest.

A spin-off from trucking group XPO, GXO is working with a financial adviser to evaluate possible acquisition requests, including those from rival logistics companies, Reuters reported, citing a person familiar with the matter.

Connecticut-based GXO has not yet made a final decision to move forward with a sale, while talks may not yet lead to a deal, the news agency added.

A company spokesman declined to comment, Reuters said.

With a market capitalization of more than $6 billion, GXO offers supply chain management tools, as well as services such as artificial intelligence-based robotics and warehousing. The company said it employs more than 130,000 people in more than 970 facilities and has a customer base that includes leading groups such as Apple (NASDAQ: ), Coca-Cola (NYSE: ), Intel (NASDAQ: ), Nestle, L. — Oreal and NIKE (NYSE: ).

Since being split in 2021, GXO shares have lost more than a fifth of their value as the firm faces headwinds from weak demand from UK and European clients. The falling share price made the company more attractive as a takeover target, Reuters reported.

But GXO has seen improved performance in recent quarters, including a 19% rise in revenue to $2.85 billion in its latest three-month earnings report in August.

GXO also reiterated its 2024 guidance for organic revenue growth of 2% to 5% and adjusted core income of $805 million to $835 million, with Chief Executive Malcolm Wilson citing in part “strengthening consumer demand” in the UK and Europe.

“We signed about $270 million in new business wins. We are also seeing an increase in contract length as clients look to outsource to a trusted partner,” Malcolm said at the time.