Let’s put two and two together. XPO purchases Conway for Menlo. The common sentiment was that Truckload would be sold. XPO sells Truckload. What does this mean?
Brad Jacobs has become a billionaire by either creating companies and selling them, or buying companies and then selling them at higher prices. How? An LTL company is no different than a Last Mile and that’s no different than Waste Management and that’s no different than an oil brokerage firm and that’s no different from an equipment rental company and that’s no different than what we he buys next.
Jacobs and his team have systemically made XPO a money making machine. He cares nothing about us, but what CEO does? He is not in the logistics business. He is and has been in the business of flipping companies.
XPO buys Conway. FOS and above salaries get cut. Terminal Managers are getting fired left and right. Tenured guys. Guys who have been with the company decades. Guys who make too much money. XPO has cut every single salary except the driver, which they are unable to do. But if they could, they would.
XPO cut lean. XPO cut corporate jobs. XPO cut managers’ salaries. XPO cut equipment purchases. XPO cut vendor pay by consolidating with Facility Source. XPO has gutted this company for the sake of raising the share price. Now we are in the cycle of life talks again. Why though? Well, that’s another topic that I cannot approach now as it is too complex yet obvious.
We will be sold. Home Depot wants us for two reasons. We have a spectacular Last Mile division. And if HD buys us it means Amazon could not. Online shopping has grown significantly year over year and is forecasted to continue. HD would never become obsolete because they offer much more than applicable purchases, but could gain significant ground in regards to Amazon and their online presence. If Amazon purchased XPO, HD would only be useful for us to go to on a Sunday to purchase a chainsaw or box of nails or some obscure part to your garage.
It’s not only a defensive move by HD, but aggressive as well. If true of course.