UPS Selling Coyote Logistics for Over $1 Billion

NSRMCA member Coyote Logistics will have a new corporate parent before the year is over.

The third-party logistics firm’s current owner — United Parcel Service (UPS) — announced June 23 that it intends to sell Coyote Logistics to brokerage firm RXO for $1.025 billion. UPS purchased Coyote in 2015 for $1.8 billion.

“... The decision to sell our Coyote Logistics business allows an even greater focus on our core business,” said UPS Chief Executive Officer Carol B. Tomé in the release.

Under the terms of the deal, the sale will be “funded with a mix of equity and debt,” including more than $550 million in investments from two of RXO’s largest shareholders, according to RXO’s own release on the topic.

“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 Drew Wilkerson, chief executive officer of RXO.

The deal is expected to close by the end of the year, subject to regulatory approval.