UPS Inc. (NYSE:UPS) announced Sunday it plans to sell its truckload brokerage business Coyote Logistics to the technology-enabled brokerage RXO (NYSE:RXO) for $1.025 billion.
According to the company, Chicago-based Coyote Logistics manages around 10,000 loads per day with a network of over 10,000 carriers.
“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 Carol B. Tomé, the chief executive officer at UPS, in the release.
In January, UPS announced plans to explore strategic alternatives or a possible sale, for its struggling truckload brokerage business, which it acquired for $1.8 billion in 2015.
The deal is expected to close by the end of the year.
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