HomeInvestmentsUPS Sells Coyote Logistics to RXO in a $1 Billion Deal

UPS Sells Coyote Logistics to RXO in a $1 Billion Deal

United Parcel Service (UPS) is cutting its losses on the freight brokerage firm Coyote Logistics. UPS announced on Sunday that it will sell Coyote Logistics to RXO in a $1.025 billion deal.

UPS paid $1.8 billion for Coyote Logistics back in 2015 in an attempt to expand its business and enter a booming freight-brokerage market at the time. However, the move didn’t pan out as UPS had hoped, and the company decided to sell at a loss.

The transaction should be concluded later in 2024 after the agreement between UPS and RXO goes through regulatory review and approval.

According to UPS Chief Executive Officer Carol B. Tomé, the decision to sell Coyote Logistics was based on the company’s intention to place more focus on its core business.

“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 Tomé in a press release.

In its own press release, RXO said that it expects the acquisition of Coyote Logistics will double the company. It expects $7.1 billion in annual revenue as a result and believes it is now positioned as the third-largest freight brokerage firm in the United States.

UPS previously said that Coyote Logistics is working with 100,000 network carriers while managing 10,000 daily loads.

Warner Bros, Discovery Looking to Split Businesses to Boost Its Stock

Warner Bros. Discovery, the entertainment conglomerate behind cable network HBO, Warner Bros. film and TV studios, and streamer Max, is exploring several options that...

Domino’s Pizza Stock Falls Amid Worse-Than-Expected Sales in Q2

The shares of Domino’s Pizza tumbled 12% on Thursday after the pizza restaurant chain reported worse-than-expected sales in the second quarter and adjusted its...

Ray-Ban’s Owner EssilorLuxottica Acquires Streetwear Brand Supreme in $1.5 Billion Deal

Italian-French corporation EssilorLuxottica, which owns the legendary sunglasses and eyeglasses brand Ray-Ban, has acquired streetwear maker Supreme from VF Corporation in a $1.5 billion...