Investing.com -- Shares in GXO Logistics (NYSE:GXO) rose more than 5% in premarket US trading on Thursday following a Reuters report that the logistics services provider is exploring a possible sale after receiving takeover interest.
A spin-off of trucking group XPO, GXO is working with a financial advisor to assess possible acquisition requests, including those from rival logistics businesses, Reuters reported, citing a person familiar with the matter.
Connecticut-based GXO has yet to make its final decision to go ahead with a sale, while the talks may still not result in a transaction, the news agency added.
A spokesperson for the company declined to comment, Reuters said.
With a market capitalization of more than $6 billion, GXO offers supply chain management tools as well as services like artificial intelligence-powered robotics and warehousing. The company has said it employs more than 130,000 people across more than 970 facilities and has a client base that includes blue-chip groups like Apple (NASDAQ:AAPL), Coca-Cola (NYSE:KO), Intel (NASDAQ:INTC), Nestle, L'Oreal and Nike (NYSE:NKE).
Since being spun off in 2021, GXO shares have shed more than a fifth of their value as the firm faces headwinds from weak customer demand in the UK and Europe. The dip in its stock price has made the company more attractive as a takeover target, Reuters reported.
But GXO has posted improved performance in recent quarters, including revenue growth of 19% to $2.85 billion in its latest three-month earnings report in August.
GXO also reiterated its full-year 2024 guidance for organic revenue growth of 2% to 5% and adjusted core income of $805 million to $835 million, with Chief Executive Officer Malcolm Wilson partly citing "strengthening consumer demand" in the UK and Europe.
"We signed about $270 million of new business wins. We’re also seeing contract lengths increase as customers look to outsource to a trusted partner," Malcolm said at the time.