By Laura Stevens
United Parcel Service Inc. said it would buy Coyote Logistics
LLC, which provides transportation and shipping services, for $1.8
billion.
The deal is expected to close within 30 days and will be
financed with cash and new and existing debt arrangements. UPS said
Friday that the acquisition should start adding to earnings in
2016.
"The brokered full-truckload freight segment is a high growth
market and we expect it will continue to outpace other
transportation segments," said UPS CEO David Abney
Coyote Logistics reported annual revenue of $2.1 billion in 2014
and brokers freight with more than 35,000 trucking companies.
The move will add a new service offering to UPS's portfolio in
the fast-growing freight brokerage business at a time when the
delivery giant has been striving to maintain its profitability
after tough back-to-back holiday seasons and a movement among
shippers toward slower and cheaper delivery methods.
Write to Laura Stevens at laura.stevens@wsj.com
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