United Parcel Service confirmed rumors that it is buying Coyote Logistics, a smaller transportation and logistics provider, for $1.8 billion in cash.
UPS said that it expected to generate $100 million to $150 million of annual operational cost cuts from the deal, which is intended to help boost UPS’s presence in the freight brokerage business.
Private equity firm Warburg Pincus owns the nine-year-old logistics company, Coyote, which contracts with more than 35,000 trucking companies and posted $2.1 billion in sales last year.
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"The brokered full-truckload freight segment is a high growth market and we expect it will continue to outpace other transportation segments," David Abney, UPS’s chief executive, said in a statement. "This high-quality acquisition significantly increases UPS full-truckload scale and we are uniquely positioned to take advantage of exciting new revenue growth and synergy opportunities."
For more of The New York Times story: www.nytimes.com
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