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UPS sells Coyote to RXO

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

Grace Sharkey
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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


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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.