Sandy Springs-based UPS announced it is buying freight brokerage firm Coyote Logistics for $1.8 billion, bringing under its own roof a business that has supplied extra capacity to UPS during the peak holiday shipping season.
Chicago-based Coyote Logistics will operate as a UPS subsidiary and will continue to be led by Coyote CEO Jeff Silver. UPS is buying Coyote from private equity firm Warburg Pincus. Coyote, founded in 2006, reported $2.1 billion in revenue in 2014.
UPS said the acquisition will bring opportunities to expand in the high-growth market for brokered full-truckload freight, with CEO David Abney adding in a written statement that “there are opportunities for growth, synergistic efficiencies and transfer of best practices and systems” across the business. Coyote arranges freight shipments on available space on trucks contracted to more than 35,000 trucking companies that are part of its carrier network.
UPS said Coyote has played a “growing role” in supporting UPS during the peak holiday season, and that role will further expand during peak operations in the future.
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