Reported 11 months ago
United Parcel Service has agreed to sell its Coyote Logistics division to RXO for just over $1 billion, which is less than what UPS had paid for the freight-brokerage company in 2015. The sale is aimed at enabling UPS to refocus on its core package-delivery business. The deal is expected to close this year pending regulatory approval, and UPS will update its financial outlook post-sale. Coyote's acquisition by RXO, a Charlotte-based freight broker, will nearly double RXO's annual revenue to $7.1 billion and position it as the third-largest freight broker in North America, with Coyote boasting 15,000 customers and 2,500 employees. UPS had initially acquired Coyote for $1.8 billion from Warburg Pincus to expand in the freight-brokerage sector.
Source: YAHOO