Chicago-based Coyote Logistics is described by UPS as a “leading global third-party logistics (3PL) provider”. The company is working with 100,000 network carriers and manages 10,000 loads per day.
According to UPS, the transaction is expected to close by the end of the year, subject to regulatory review and approval. UPS adds that upon completion of the transaction, the company will update its financial outlook.
“As UPS positions itself to become the premium small package provider and logistics partner in the world, the decision to sell our Coyote Logistics business allows an even greater focus on our core business,” said UPS Chief Executive Officer Carol B. Tomé.
Back in July 2015, UPS paid $1.8 billion to buy Coyote from the private-equity firm Warburg Pincus. The moved was intended as a means of expanding in the freight-brokerage business. Previously, UPS had used Coyote to boost capacity for shipments during peak periods.