As reported last week, UPS does indeed plan to acquire Coyote Logistics from private equity firm Warburg Pincus for US$1.8 billion. Chicago-based Coyote is a non-asset based truckload freight brokerage company, which markets itself as a tech-savvy firm with a young staff. The 17th largest 3PL in the United States, Coyote reported annual revenues of $2.1 billion in 2014.
Closing is expected quite quickly, in as soon as 30 days, subject to the usual conditions and regulatory approvals. UPS said the transaction will be financed with cash and through existing and new debt. The acquisition will be added to UPS’s earnings in 2016.
Coyote arranges freight shipments with trucking companies, which the company said number more than 35,000 in its network. Coyote employees and their expertise, along with their systems and culture, will be supported by UPS.
Coyote has seen very rapid growth since it was founded in 2007. It enjoys strong market positions among food-and-beverage and consumer-goods customers, as well as paper, packaging, industrial and retail segments.
Following the acquisition and integration of Access America Transport to its network last year, Coyote added flatbed service segments, such as heavy equipment and construction. Coyote CEO Jeff Silver will continue to lead Coyote as a UPS subsidiary.