UPS Sells Coyote Logistics to RXO for $1.025 Billion

United Parcel Service (UPS), the world’s largest package delivery company, has agreed to sell its Coyote Logistics unit to logistics company RXO for $1.025 billion. The deal, announced by the companies on Sunday, will be financed through a combination of equity and debt.

RXO, based in North Carolina, detailed the funding structure for the acquisition, which includes a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments.

UPS CEO Carol Tome stated that the sale of Coyote Logistics would allow UPS to “focus even more on our core business.” This move marks a strategic shift for UPS, which originally acquired Coyote Logistics from private equity firm Warburg Pincus in 2015 for $1.8 billion. The acquisition was intended to bolster UPS’s capabilities in full-truckload services.

RXO, which specializes in assisting shippers and carriers with freight movement, will take over the Coyote Logistics operations as part of its expanding portfolio in the logistics sector.