* Georgia - UPS to buy Coyote for $1.8 billion to ease peak cargo crunch
-- United Parcel Service Inc. will buy Coyote Logistics in a $1.8 billion bid to jump into the freight brokerage business and improve holiday-season shipping performance... The deal could help generate additional revenue and savings of as much as $150 million, UPS said Friday, as the company expands into the business of linking customers with thousands of haulers able to do the work. UPS could also tap into Coyote's network of 35,000 trucking companies for extra help during its crucial November-December peak season... Acquiring a freight broker that doesn't have its own vehicles is a departure for Atlanta-based UPS. The world's largest package-delivery company operates a fleet of 100,000 vehicles spanning trucks to motorcycles. Coyote had $2.1 billion in revenue last year, and while UPS doesn't break out its full- truckload brokerage revenues, a spokesman, Steve Gaut, said the acquisition would accelerate those sales... UPS has focused on smaller purchases since European regulators thwarted its attempt to purchase TNT for about $6.9 billion in 2012. That same year it purchased a Belgian company, Kiala, that set up a system where customers could have packages delivered to a nearby store, instead of their homes. UPS has expanded this service under its Access Point brand, announcing earlier this week it will offer it in 100 additional U.S. cities... In June, a UPS subsidiary bought a small logistics firm serving the jewelry business called Parcel Pro...
(Photo: Coyote's head office) -- Atlanta, GA, USA - Bloomberg News, by Michael Sasso - 31 July 2015Labels: trucking industry news USA
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