Unfolding XPO Logistics’ European Operations

XPO Logistics (XPO) has the largest road transportation fleet in Europe. The company offers full truckload, last-mile logistics, and LTL (less-than-truckload) transportation services in the Eurozone. 

XPO has the largest less-than-truckload transportation network in Western Europe. The company’s lane density for transportation in the Eurozone covers ~90.0% of this region’s GDP. According to XPO, its European transportation business, truck brokerage, LTL, and last-mile logistics operations comprise around 80.0% of its European transportation segment’s EBITDA.[1. earnings before interest, taxes, depreciation, and amortization]

XPO has been able to make significant inroads into the European market as a result of its acquisition of Norbert Dentressangle for $3.5 billion in 2015.

Transportation and logistics companies have followed an acquisition strategy to reach their European goals. While FedEx (FDX) acquired TNT Express for 4.4 billion euros in 2016, United Parcel Service (UPS) acquired Coyote Logistics in 2015.

For investors interested in the transportation space, the First Trust Industrials/Producer Durables AlphaDEX ETF (FXR) is a viable option. Major airlines such as JetBlue Airways (JBLU) and Delta Air Lines (DAL) comprise ~16.4% of this ETF.