The shareholders of Express-1 Expedited Solutions approved a $150 million private equity investment and a change in management and name for the company.
The non-asset transportation and brokerage company will now be known as XPO Logistics, and investor Bradley S. Jacobs will be XPO’s chairman and CEO.
Jacobs, the founder of multi-billion-dollar businesses such as United Rentals and the company now known as Waste Management, plans rapid expansion for XPO.
He told a group of investors in July he plans bolt-on acquisitions this year that would double the size of $158 million XPO Logistics, a publicly owned company.
His goal is to build a multi-billion-dollar truck brokerage, freight forwarding, intermodal and expedited transportation enterprise from XPO’s foundation.
“There are thousands of acquisitions opportunities” in brokerage, Jacobs said in June. “We’re going to buy a lot of freight brokers of all sizes all around the country.”
Eighty-one percent of the shareholders agreed to a plan that would pump a total of $150 million into the company in return for preferred stock and warrants.
The shareholders also voted to increase the number of authorized shares and to effect a 4-to-1 reverse stock split that would boost the per share value.
XPO’s preferred shares would be worth $7 each after the reverse stock split. The warrants also would have an exercise value of $7 per share of company stock.