The Strategist

UPS to sell freight broker Coyote Logistics for $1bn

06/25/2024 - 11:31

The deal between RXO Inc. and United Parcel Service (UPS), the largest express delivery service in the world, calls for UPS to sell its freight brokerage business to Coyote Logistics for a sum of $1.025 billion.
A joint press release states that RXO's current funds as well as additional debt, including those from the company's largest shareholders, will be used to finance the transaction. Because of the asset addition, RXO will grow to be the third-biggest freight broker in North America, with synergies of at least $25 million.

It is anticipated that the deal would be finalized in late 2024.

Last year, Coyote generated over $3.2 billion in revenue and $86 million in adjusted EBITDA.

UPS and RXO securities have both experienced a 13% decline since the year's commencement. The S&P 500 index increased by 15% over that time.