United Parcel Service (UPS.N), the world’s largest package delivery firm, has announced the sale of its Coyote Logistics business unit to RXO (RXO.N) for $1.025 billion. The transaction, disclosed on Sunday, will be funded through a combination of equity and debt. This includes a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments, according to a statement by North Carolina-based RXO.
“The decision to sell our Coyote Logistics business allows an even greater focus on our core business,” said UPS Chief Executive Officer Carol Tome.
Coyote Logistics, a key player in full-truckload services, was acquired by UPS from private equity firm Warburg Pincus for $1.8 billion in 2015. This strategic move was initially aimed at expanding UPS’s capabilities in full-truckload logistics.
RXO, known for aiding shippers and carriers in moving freight, will integrate Coyote Logistics into its operations, enhancing its service offerings and market reach.
This sale aligns with UPS’s strategy to streamline its operations and concentrate on its primary package delivery business, ensuring a sharper focus on its core competencies.
