ATLANTA (AP) - UPS will spend $1.8 billion to acquire Coyote Logistics as it maneuvers for a slice of the burgeoning freight brokerage business.
ATLANTA (AP) — UPS will spend $1.8 billion to acquire Coyote Logistics as it maneuvers for a slice of the burgeoning freight brokerage business.
Coyote has helped support UPS in the past during the busy holiday season, the last two of which have caused headaches for the shipping giant. Coyote's carrier network includes more than 35,000 trucking companies.
Coyote, which is owned by private-equity firm Warburg Pincus, booked revenue of $2.1 billion last year. The Chicago company will become a UPS subsidiary and continue to be headed by Jeff Silver.
UPS said Friday that it expects the acquisition adding to its earnings next year. The Atlanta company anticipates the transaction could result in $100 million to $150 million in annual operating savings.
The deal is targeted to close within 30 days.
Shares of UPS added 71 cents to $102.11 in morning trading.