UPS to sell Coyote Logistics to RXO for $1.025 billion

UPS tractor-trailer on the highway

UPS Sunday announced it has entered into an agreement to sell its Coyote Logistics business unit to RXO, Inc., for $1.025 billion.

“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.

Based in Chicago, Coyote Logistics is a leading global third-party logistics provider, working with 100,000 network carriers and managing 10,000 loads per day.

The transaction is expected to close by the end of the year, subject to regulatory review and approval, according to a statement from UPS. Upon completion of the transaction, the company said it will update its financial outlook.