In what was a lightning-fast acquisition process, UPS completed its purchase of Coyote, the Chicago-based 3PL, for US$1.8 billion. Coyote was backed by New York City-based private equity firm, Warburg Pincus.
Coyote is a non-asset-based truckload freight brokerage company, which markets itself as a tech-savvy firm with a young staff. The 17th largest 3PL in the United States, Coyote reported annual revenues of $2.1 billion in 2014. This acquisition will be added to UPS’s earnings in 2016.
Coyote will operate as a wholly owned subsidiary of UPS. Coyote CEO Jeff Silver will continue to lead the company, reporting to Alan Gershenhorn, UPS’s chief commercial officer.