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United Parcel Service (NYSE:UPS) announced on Sunday that it has entered into an agreement to sell its Coyote Logistics business unit to RXO (NYSE:RXO) for $1.025 billion.
The transaction is expected to close before the end of the year.
“As UPS positions itself to become the premium small package provider and logistics partner in the world, the decision to sell our Coyote Logistics business allows an even greater focus on our core business,” stated UPS Chief Executive Officer Carol B. Tomé.
Following the closing of the transaction, the package delivery giant company will update its financial outlook.
For its part, RXO (RXO) expects the acquisition of Coyote Logistics will enhance the company’s market position, diversify and expand its customer base, and broaden its carrier network. At closing, RXO (RXO) will be the third-largest provider of brokered transportation in North America. The addition of Coyote’s customer base is anticipated to diversify RXO’s (RXO) vertical mix and will increase the number of customers who do more than $1 million in business with the company by approximately 80%. Notably, the acquisition is seen providing RXO (RXO) with both immediate and long-term opportunities for revenue and earnings growth and generate significant returns for shareholders
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