- 3 August 2015
- Transport / Logistics Services
UPS has announced that it has agreed to acquire Coyote Logistics from Warburg Pincus for $1.8 billion. The acquisition expands UPS’ service portfolio, adding non-asset based full truckload and transportation management services. It also gives UPS synergies for backhaul utilisation and purchased transportation.
Coyote Logistics posted $2.1 billion in revenues in 2014 and is one of the fastest growing third-party logistics companies in North America. Coyote Logistics arranges transportation for over 6,000 loads per day for a range of shippers, including Fortune 100 companies.
According to UPS, the brokered FTL freight sector is a high growth market. The company states that the acquisition increases its full truckload scale, and enables it to take advantage of new revenue growth opportunities. Furthermore, UPS states that it will achieve up to $150 million of annual operating synergies, to be derived from backhaul utilisation, purchased transportation and from cross-selling opportunities.
Coyote arranges customers’ freight shipments on available trucking capacity contracted to members of its large carrier network, numbering more than 35,000 trucking companies. Coyote has experienced very rapid revenue growth since inception and has built extensive relationships with a broad customer base. The company enjoys strong market positions among food and beverage, and consumer goods customers, as well as paper and packaging, industrial and retail segments. Following the acquisition and integration of Access America Transport to its network last year, Coyote added industry leading strength in flatbed serviced segments such as heavy equipment and construction.
UPS is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide.