A $1 billion sale: UPS sells logistics brokerage business to RXO

ATLANTA – UPS announced yesterday that it has agreed to sell its Coyote Logistics business unit to brokered transportation giant RXO for $1.025 billion.

Based in Chicago, Coyote is a third-party logistics provider. According to the company, it works with 100,000 network carriers and manages 10,000 loads per day.

“As UPS positions itself to become the premium small package provider and logistics partner in the world, the decision to sell our Coyote Logistics business allows an even greater focus on our core business,” said UPS CEO Carol B. Tomé.

In January, UPS announced that it would explore strategic alternatives for Coyote, including a possible sale. At the same time, UPS cut 12,000 full- and part-time management and contract positions. UPS acquired Coyote in 2015 for $1.8 billion.

The transaction is expected to close by the end of the year, subject to regulatory review and approval. Upon completion of the transaction, the company will update its financial outlook.

J.P. Morgan Securities LLC is serving as the exclusive financial advisor to UPS, and King & Spalding is serving as the legal advisor to UPS.

See also:

  • UPS to lay off 12,000 as revenue falls by $2 billion
  • AICO turns to UPS, FedEx for new quick-ship program

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