UPS announces sale of Coyote Logistics unit for $1 billion
How much is UPS selling Coyote Logistics for?
UPS is selling Coyote Logistics to RXO Inc. for $1.025 billion. This decision aims to enhance UPS's focus on its core operations as part of its "Better and Bolder" strategy. Coyote Logistics is a global third-party logistics provider based in Chicago, working with 100,000 network carriers and managing 10,000 loads per day. The transaction is expected to close by the end of the year.
What are the expected closing conditions for the deal?
The expected closing conditions for the deal include regulatory approvals and meeting certain requirements stated in the agreement between UPS and RXO Inc. The deal is expected to close by the end of this year, and after the transaction is completed, UPS plans to update its financial outlook.
How will UPS' financial outlook change post-transaction?
UPS plans to update its financial outlook after the sale of its Coyote Logistics freight brokerage unit for $1.025 billion. The decision to sell allows UPS to focus on its core business and become the premium small package provider and logistics partner in the world. The transaction is expected to close by the end of this year, subject to regulatory approvals and closing conditions.