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United Parcel Service is in talks to buy Chicago-based Coyote Logistics for approximately $1.8 billion, according to two sources with inside information, according to Bloomberg News.
The deal to acquire Coyote, a transport-management service provider, could be reached as soon as this month, according to one of the sources who asked to remain anonymous since the information is not yet public. No agreement has been reached and discussions could still fall apart.
A deal between Coyote and UPS would be the third-largest logistics deal this year, amid a wave of industry consolidation prompted by rising consumer demand. In April, FedEx agreed to buy Dutch parcel-delivery company TNT Express for $4.8 billion. Later that month, XPO Logistics agreed to acquire
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European counterpart Norbert Dentressangle in a deal valued at $3.53 billion including debt.
Private equity firm Warburg Pincus has backed Coyote Logistics with bolt-on acquisitions, including Access America Transport last year. While terms for that deal weren’t disclosed, Coyote said in a statement that the combined company would be one of the biggest third-party logistics providers in North America, with run rate revenue of more than $2 billion, 17 locations and about 1,750 employees.
Representatives for UPS, Warburg Pincus and Coyote declined to comment.
For more of the Bloomberg story: www.bloomberg.com
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