UPS announces sale of Coyote Logistics unit to RXO for $1 billion (updated)

RXO

23/06/2024 20:08

(Adds detail on funding, UPS CEO statement, background)
       June 23 (Reuters) - United Parcel Service  UPS.N , the
world's biggest package delivery firm, will sell its Coyote
Logistics business unit to RXO  RXO.N  for $1.025 billion, the
companies said on Sunday.  
    The transaction will be funded with a mix of equity and
debt, including a $300 million equity investment from MFN
Partners and a $250 million equity investment from Orbis
Investments, North Carolina-based RXO said in a statement. 
    "The decision to sell our Coyote Logistics business allows
an even greater focus on our core business," UPS Chief Executive
Officer Carol Tome said.
    RXO helps shippers and carriers to move freight.  
    UPS bought Coyote Logistics from private equity firm Warburg
Pincus for $1.8 billion in 2015 to expand its full-truckload
services. 
    

 (Reporting by Devika Nair in Bengaluru; Editing by Bill
Berkrot)
 ((Devika.MadhusudhananNair@thomsonreuters.com;))