● Watch Now


BusinessNewsTechnologyTop Stories

UPS sells Coyote to RXO

UPS sells brokerage for $775 million less than the purchase price

Grace Sharkey
·
UPS sells Coyote Logistics to RXO. (Photo: Jim Allen/FreightWaves)

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.

UPDATE: RXO shares soar on news of Coyote deal; combined company to be 3rd-biggest 3PL


Articles by Grace Sharkey

RXO joins logistics companies facing ratings agency cut

RXO, still suffering from weak market, touts Q1 volume growth

Over 1,300 layoffs hit logistics companies across US

9 Comments

  1. Black Hawks Down

    Given the recent rulings on the abolishment of non compete clauses it will be interesting to see how Bradley plays that aspect.

  2. Victor

    Is it that hard to articulate a coherent statement in these comments? I, personally, can’t make heads or tails of them. No wonder the trucking industry is in the condition it is today. UPS sells a division off at a loss from the purchase price. How hard is that to understand? Welcome to Business 101. Honestly, it’s not that big a deal. UPS simply cutting losses on a non-profitable product.

  5. Vlah Smradvski super egovski maybahen

    RXO ,GXO,PXO,FXO ,AXO ,BXO.
    Book cooking big time ,wander who is fool enough to invest in those, Bernard Medhof on steroids scams.

  6. Xavier XPO

    Here for the lolz

    Excited for Big Brad to roll a bunch of poor performers up. Claim they’re going to fix them. Do absolutely nothing, try to sell it, then break them all back apart again with no value added.

    I love the smell of fresh corporate in the morning

  7. Billy Big Rigger

    Good for them. Hope they keep losing money. They clearly don’t know how to run logistics or freight. They lost on the UPS Freight deal and now this. Maybe they need to get rid of ALL the rich CEOs and upper management that are only worried about lining their own pockets instead of running a successful business

Comments are closed.

Grace Sharkey

Grace Sharkey is a professional in the logistics and transportation industry with experience in journalism, digital content creation and decision-making roles in the third-party logistics space. Prior to joining FreightWaves, Grace led a startup brokerage to more than $80 million in revenue, holding roles of increasing responsibility, including director of sales, vice president of business development and chief strategy officer. She is currently a staff writer, podcast producer and SiriusXM radio host for FreightWaves, a leading provider of news, data and analytics for the logistics industry. She holds a bachelor’s degree in international relations from Michigan State University. You can contact her at gsharkey@freightwaves.com.