Fell
United Parcel Service (New York Stock Exchange: UPS) announced Sunday that it has reached an agreement to sell its Coyote Logistics business unit to RXO (New York Stock Exchange:RXO) for $1,025 million.
The transaction is expected to close before the end of the year.
“Like UPS is positioned to become the world's premium small package provider and logistics partner, the decision to sell our Coyote Logistics business allows for even greater focus on our core business,” said Carol B. Tomé, UPS CEO.
Following the closing of the transaction, the package delivery giant will update its financial outlook.
For its part, RXO (RXO) expects the acquisition of Coyote Logistics to improve the company's market position, diversify and expand its customer base, and expand its carrier network. Upon closing, RXO (RXO) will be the third largest intermediated transportation provider in North America. The addition of Coyote's customer base is anticipated to diversify RXO's (RXO) vertical mix and increase the number of customers doing business over $1 million with the company by approximately 80%. In particular, the acquisition is considered to provide RXO (RXO) with immediate and long-term opportunities for revenue and earnings growth and generate significant returns for shareholders.
