The Deal Unveiled: UPS to Part Ways with Coyote Logistics
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United Parcel Service (NYSE:UPS) made waves on Sunday as it revealed its plans to offload its Coyote Logistics arm to RXO (NYSE:RXO) in a deal worth $1.025 billion. The hotly-anticipated transaction is slated for closure by year-end.
With a view to establishing itself as a premier small package provider and a global logistics stalwart, UPS Chief Executive Officer Carol B. Tomé highlighted the strategic divestiture of Coyote Logistics as a means to sharpen the company’s focus on its core operations.
As the ink dries on the deal, UPS is expected to revise its financial projections to reflect the altered business landscape.
RXO’s Strategic Coup: Gaining a Foothold with Coyote Logistics Acquisition
On the other end of the spectrum, RXO (RXO) is poised to bask in the glow of its acquisition of Coyote Logistics, which is seen as a vital cog in expanding its footprint and strengthening market share in North America. As the transaction comes to fruition, RXO (RXO) is set to emerge as the third-largest brokered transportation provider on the continent.
The addition of Coyote’s clientele promises to inject fresh vigor into RXO’s customer portfolio, heralding a newfound diversification of vertical offering and a notable uptick in customers transacting over $1 million with the company, marking an upsurge of around 80%. The acquisition is forecasted to unlock an array of immediate and enduring revenue and earnings possibilities for RXO (RXO), laying the groundwork for substantial returns and value appreciation for its investors.
