UPS has announced it will sell its Coyote Logistics business unit to RXO, Inc., for US$1.025bn as part of its ‘Better and Bolder’ strategy.
Coyote Logistics is global third-party logistics (3PL) provider that works with 100,000 network carriers and manages 10,000 loads per day.
The transaction is expected to close by the end of the year, subject to regulatory review and approval. Upon completion of the transaction, the company will update its financial outlook.
“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 UPS chief executive officer Carol B Tomé.
JP Morgan Securities is serving as the exclusive financial advisor to UPS, and King & Spalding is serving as the legal advisor to UPS.