Left: Coyote Logistics’ headquarters in Chicago
UPS has entered into a definitive purchase agreement with Warburg Pincus to acquire transportation and logistics service provider Coyote Logistics for US$1.8bn.
Founded in 2006, Coyote reported annual revenues of US$2.1bn in 2014. The deal is expected to be closed within 30 days, subject to regulatory approvals, and will be assigned to UPS earnings in 2016.
David Abney, CEO for UPS, said, “The brokered full-truckload freight segment is a high growth market and we expect it will continue to outpace other transportation segments. This high quality acquisition significantly increases UPS’s full-truckload scale and we are uniquely positioned to take advantage of exciting new revenue growth and synergy opportunities.”
Jeff Silver, CEO for Coyote Logistics, said, “The Coyote management team is very excited to become a part of UPS and to continue to grow, now with UPS’s support. We’re also very thankful for the Warburg Pincus partnership over the last several years. Our great people, leading technology and flexible organization will enable us to scale quickly to take full advantage of the added customers, lanes and capacity within UPS. It’s a great day for Coyote employees, our customers and our contracted carriers.”
UPS often supplements its delivery fleet with contract transportation providers during peak holiday shipping seasons and Coyote has partnered with UPS to perform that role in recent years.
Alan Gershenhorn, executive vice president and chief commercial officer, UPS, said, “Through the Coyote network, UPS will provide our combined customer base with an even more seamless supply chain solutions portfolio from multi-modal freight shipments to small-package delivery. We will now also have the technology to help our customers improve the utilization of their fleets as part of an extended network of carriers.”
August 4, 2015