United Parcel Service (aka UPS) has acquired Coyote Logistics which is headquartered in Chicago from Warburg Pincus for $1.8 billion.
UPS is a shipping and logistics company, used by businesses and consumers alike as a popular method of package delivery.
Coyote Logistics arranges for shipping and delivery for customers through the contracting of independent truckers in a large carrier network.
UPS has often augmented its fleet through the use of contract transportation providers during periods of peak volume. Coyote also has software applications that can be integrated into UPS’s current logistics system.
The parent company of Coyote Logistics is Warburg Pincus, a private equity investment firm headquartered in the U.S., but with offices around the world.
In a release on the official UPS website announcing the deal, David Abney, the UPS CEO, says:
“The brokered full-truckload freight segment is a high growth market and we expect it will continue to outpace other transportation segments. 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.”
Jeff Silver, the CEO at Coyote Logistics, adds:
“The Coyote management team is very excited to become a part of UPS and continue to grow, now with UPS’s support. We’re also very thankful for the Warburg Pincus partnership over the last several years.
“Our great people, leading technology and flexible organization will enable us to scale quickly to take full advantage of the added customers, lanes and capacity within UPS. It’s a great day for Coyote employees, our customers and our contracted carriers.”
Closing of the $1.8 billion sale should be within 30 days and the companies anticipate an improvement of service to customers as the two combine their resources.
Coyote will continue to be managed by Silver as a subsidiary of UPS. It’s currently anticipated that the employees of Coyote will be retained to continue to run the division.
Coyote Logistics was founded in 2006 as a third-party logistics service provider. The company maintains a network of independent service providers to use as needed to meet business demand. It is responsible for arranging the shipping of more than 6,000 loads a day for a variety of clients large and small.
UPS came into existence in 1907 as the American Messenger Co., a Seattle-based bike messenger service. The company morphed through the years until, in 1937, it obtained the iconic logo still in use today.
Image: Coyote Logistics/YouTube
Perfect partnership. I hope it does a lot of good things for UPS. After all, many depend on it for their delivery services.