The air delivery and freight services company announced it secured a $700 million investment from the Ontario Teachers' Pension Plan, PSP Investments, and Singapore's sovereign wealth fund, GIC. Under the investment agreement XPO Logistics will sell newly issued common stock and preferred stock to the funds. The sale gives the three funds a combined stake in the company of about 21%.
The investment is scheduled to close on Sept. 17. XPO Logistics will use the proceeds from the investment to fund unspecified acquisitions.
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TheStreet Ratings team rates XPO LOGISTICS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate XPO LOGISTICS INC (XPO) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."