UPS Strikes $1.2B Deal to Sell Coyote Logistics to RXO
RXO has agreed to acquire Coyote Logistics from UPS for $1.025 billion, positioning RXO as North America’s third-largest brokered transportation provider, according to a release from RXO. This acquisition will expand RXO’s customer base and carrier network.
“Acquiring Coyote scales our brokerage business and diversifies our vertical mix,” said Drew Wilkerson, CEO of RXO. “The integration will leverage our technology and significantly boost revenue and earnings growth.”
Coyote generated $3.2 billion in revenue and $86 million of adjusted EBITDA in 2023. RXO anticipates annual cost synergies of at least $25 million. The deal, funded through equity and debt investments, is backed by fully committed financing.
Expected to close by the end of 2024, the acquisition will be immediately accretive to RXO’s earnings. RXO reaffirms its Q2 adjusted EBITDA outlook of $24 million to $30 million. Goldman Sachs & Co. LLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP are advising RXO.