August 2, 2017 / 8:34 PM / 2 years ago

XPO Logistics chasing deals worth up to $8 billion: CEO

(Reuters) - XPO Logistics Inc (XPO.N) is pursuing deals worth up to $8 billion as it completes the integration of companies it bought during a buying spree in 2015, its top executive said.

“We could easily do another deal or two in that size (deals in 2015), that’s completely feasible so now we have more bandwidth on the management team,” Chief Executive Bradley Jacobs told Reuters on Wednesday.

The logistics company, which reported an 11.7 percent jump in profit attributable to shareholders in the second quarter, spent about $6.5 billion in 2015.

The acquisitions that year included France’s Norbert Dentressangle SA and trucking and logistics company Con-way Inc.

“It is highly unlikely that we complete a deal in 2 or 3 months, so the more realistic time frame is up to a year even longer than that,” Jacobs said.

XPO has had preliminary discussions with a couple of companies and was at a very initial stage of the process, he added.

The company, whose market capitalization has surged to over $6 billion from $173 million in 2011, was looking at existing lines of business or ones that are very closely related to its business mainly in North America and Europe.

Greenwich, Connecticut-based XPO said revenue rose 2.1 percent to $3.76 billion in the latest quarter.

XPO, whose customers include General Motors Co (GM.N), Home Depot Inc (HD.N) and Kellogg Co (K.N), said it expects ecommerce to be a long-term driver of growth.

The company raised its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to at least $1.37 billion in 2017 and at least $1.6 billion in 2018, from $1.35 billion in 2017 and at least $1.58 billion in 2018 it previously expected.

Reporting by Rachit Vats and Arunima Banerjee in Bengaluru; Editing by Sriraj Kalluvila

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