American logistics company RXO inc. has completed the acquisition of Coyote Logistics, a subsidiary of United Parcel Service, Inc. for the transportation of light goods, for $1.025 billion. This is reported in the RXO press release.
The financing of the transaction provided for the use of equity and debt capital, including investments from MFN Partners and Orbis Investments, the two main shareholders of RXO, in the amount of $300 million and $250 million, respectively.
The deal is aimed at strengthening RXO's position in the market, as well as expanding the customer base and carrier network as part of the diversification of RXO's vertical structure, increasing the number of customers by 80% and profit for shareholders.
Upon completion of the transaction, RXO will continue to provide UPS transportation services under a contract that runs until January 2030.
Coyote Logistics was acquired by UPS in 2015 and is the third largest transportation service provider in North America.
Goldman Sachs & Co. LLC acted as financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to RXO.
RXO is one of the largest American companies in the light—duty cargo transportation sector. RXO offers high-tech brokerage services, as well as freight forwarding and last-mile delivery. The company combines production facilities and advanced technologies for efficient cargo transportation in North America. The headquarters is located in Charlotte (North Carolina).
Coyote Logistics is an American logistics company in the truck transportation sector, as well as intermodal brokerage and transportation management services for 14 thousand shippers in North America. The company's revenue in 2023 amounted to about $3.2 billion. The headquarters is located in Chicago (Illinois).
United Parcel Service, Inc. (UPS) is one of the largest American companies in the express cargo delivery and logistics sector. The headquarters is located in Atlanta (Georgia). The key client of the company is Amazon.com , which accounts for about 11.3% of UPS revenue.
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