UPS Completes $1.8 Billion Coyote Logistics Acquisition
UPS Inc. announced it has completed the $1.8 billion purchase of third-party provider Coyote Logistics to expand the package carrier’s presence in the domestic brokerage market.
The acquisition announced less than three weeks ago adds U.S. truckload and less-than-truckload and other brokerage services to UPS’ offerings. The company that ranks No. 1 on theTransport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers already offers international forwarding and other logistics services through the supply chain and freight unit.
“Coyote is a transportation and logistics innovator which has changed traditional business models to serve their customers in new, unique and more satisfying ways,” said David Abney, CEO of UPS. "We will provide our combined customer base with a portfolio of seamless supply chain solutions from multimodal freight shipments to small-package delivery. We are excited to welcome the talented Coyote team to UPS.”
UPS has estimated as much as $150 million in savings annually, largely through improved equipment utilization.
Coyote will be run as a subsidiary of UPS, with founder and CEO Jeff Silver continuing to lead Coyote.
The only truckload brokerage previously offered by UPS was done through services at its Freight unit. Brokerage revenue was embedded in $63 million of truckload revenue in the second-quarter earnings report.
By comparison, Coyote’s revenue last year was $2.1 billion after growing sales at a 50% pace annually over six years.