(Bloomberg) -- XPO Logistics Inc. is divesting its North American intermodal business to private equity-backed STG Logistics Inc. for $710 million.
The unit, which handles rail brokerage and other services, generated $1.2 billion in revenue in 2021, according to statement provided to Bloomberg News. XPO said the unit has 700 employees.
It's the latest transaction for XPO Chief Executive Officer Brad Jacobs, an avid dealmaker who has done more than 500 acquisitions, building four companies before XPO.
Jacobs said in the statement that deal brings XPO a step close to his plan to split it into two public companies, one focused on freight brokering and the other on trucks that transport loads from multiple customers on one trailer. XPO is also looking to sell or list its European business, the company said in March.
For More: XPO Logistics Explores Breakup Of Transportation Company
The buyer, STG Logistics, is owned by a middle-market private equity firm Wind Point Partners, which is based in Chicago.
XPO's shares, which have climbed 10% in the past year, gained 0.3% to $76.37 in New York at 2:42 p.m. Friday, giving the company a market value of about $8.8 billion.
Raymond James Financial Inc. and Wachtell, Lipton, Rosen & Katz advised XPO on the transaction.
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