XPO Logistics Inc. XPO, +1.12% announced Friday that it expects cash proceeds of $710 million from the sale of its North American intermodal business to STG Logistics. The provider of freight transportation services said the unit had generated $1.2 billion of revenue in 2021, or 9.3% of total revenue of $12.81 billion, and had 700 employees. XPO said it will update its financial guidance when it reports first-quarter results, which is currently projected to be in early May, according to FactSet. “This divestiture simplifies our business model and moves our capital structure closer to investment-grade — two priorities in our strategic plan to unlock significantly more value for our stakeholders,” said Chief Executive Brian Jacobs. The stock, which was still inactive in premarket trading, has slipped 1.6% year to date, while the Dow Jones Transportation Average DJT, +0.35% has eased 0.9% and the Dow Jones Industrial Average DJIA, +0.44% has lost 4.5%.
