Landstar (CCJ Top 250, No. 10) is seeking a buyer for its Mexican subsidiary, according to paperwork the Jacksonville, Fla.-based carrier has filed with the Securities Exchange and Commission.
Landstar said it has entered into an arrangement with a financial advisor to actively market Landstar Metro "and consider strategic alternatives for this business, which may involve a sale or other disposition in whole or in part of Landstar Metro" this fiscal year.
Landstar established Landstar Metro in 2017 with its acquisition Fletes Avella. It provides freight and logistics services within Mexico and works in conjunction with Landstar’s U.S./Mexico cross-border services. The company added that the pending disposition of its Mexican business is not expected to impact Landstar's existing cross-border services.
Landstar noted "risks and uncertainties associated with doing business in Mexico," and Landstar Metro's inability to meet strategic or operational goals and expectations as reasons to potetially exit the business.
On its second quarter earnings call in late July, Vice President and Chief Financial Officer Jim Todd noted the carrier's U.S. Mexico and U.S. Canada cross-border businesses both underperformed domestic revenue during for the quarter.
"Until we see something that shows a level of stability politically and through trade, I do think we're gonna continue to see that on the year over year probably trend to the negative side," added President and Chief Executive Officer Frank Lonegro.
