After months of negations and rumors of an acquisition, UPS today announced the company has acquired Coyote Logistics LLC for $1.8 billion.
Coyote Logistics had an annual reported revenue of $2.1 billion in 2014 and brokers freight with more than 35,000 trucking companies. “Coyote arranges customers’ freight shipments on available trucking capacity contracted to members of its large carrier network, numbering more than 35,000 trucking companies,” USP said in a press release.
“Through the Coyote network, UPS will provide our combined customer base with an even more seamless supply chain solutions portfolio from multi-modal freight shipments to small-package delivery,” said Alan Gershenhorn, UPS executive vice president and chief commercial officer.
Coyote uses a suite of “proprietary information technologies” that provides state-of-the art transportation management applications. In addition, the company has several software applications that customers and trucking companies can integrate.
“We will now also have the technology to help our customers improve the utilization of their fleets as part of an extended network of carriers,” Gershenhorn said. “We see opportunities for greater customer and UPS fleet asset utilization that will deepen our partnerships with customers.”
“In addition to the core profitability of Coyote, UPS is well positioned to realize a run-rate of $100 million to $150 million of annual operating synergies, from backhaul utilization, purchased transportation and cross-selling opportunities,” said Abney.
The acquisition is expected to close within 30 days and will include “cash and new and existing debt arrangements.”