US-based supply chain management company, United Parcel Service (UPS), is selling a logistics partner in North America to focus on its core business.
UPS has agreed to sell Coyote Logistics to RXO for $1.025 billion USD.
This follows a decision by UPS to position itself as a premium small package provider and international logistics partner.
“RXO’s highly accretive acquisition of Coyote will immediately increase the scale of our brokerage business, providing customers with more capacity across a wider array of power lanes,” said RXO CEO, Drew Wilkerson.
“RXO will realise significant synergies from the acquisition by quickly integrating Coyote’s business into RXO and leveraging our cutting-edge technology. The addition of Coyote’s customer base will diversify RXO’s vertical mix and will increase the number of customers that do more than $1.0 million in business with us by approximately 80 per cent.
“This acquisition will provide RXO with both immediate and long-term opportunities for revenue and earnings growth and will generate significant returns for shareholders.
“I look forward to welcoming Coyote’s employees to our team and working together to achieve excellent results for our customers, shareholders, carrier partners and employees for years to come.”
Coyote Logistics is based in Chicago and is reported to work with 100,000 network carriers and manages 10,000 loads daily.
The deal is expected to close by this year’s end and is subject to regulatory review and approval.
In other news, UPS Healthcare announced it would invest €55 million into two of its Italian facilities.
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