UPS in talks to buy Coyote Logistics for $1.8 bn
23 Jul 2015
United Parcel Service Inc, (UPS), the world's largest logistics company, is in talks to buy Coyote Logistics for $1.8 billion, Bloomberg yesterday reported, citing two sources familiar with the matter.
Coyote is backed by New York-based private equity firm Warburg Pincus, which had first invested in the Chicago-based provider of transport-management services provider in 2007.
A deal between UPS and Coyote would be the third-largest logistics deal this year, as the industry goes through a wave of consolidation amid rising consumer demand, the report said.
In April, FedEx Corp. struck a deal to buy Dutch parcel-delivery company TNT Express NV for $4.8 billion and XPO Logistics agreed to acquire its European rival Norbert Dentressangle SA in a $3.53 billion deal including debt.
With annual revenue of around $2 billion, Coyote Logistics is a third-party logistics provider that works with more than 35,000 local, regional, and national carriers.
Founded in 1907, UPS is the world's largest package delivery company and a leading global provider of specialised transportation and logistics services.
The Atlanta-based company employs 435,000 people worldwide and has annual revenues of $58.2 billion.