Exxon Mobil Corp. reported its quarterly profit has dropped by more than 50% and earnings fell by nearly $6 billion due to declining oil prices.
Advertisement
(NYSE:UPS) recently announced in a press release that it had entered into an agreement to acquire Coyote Logistics for $1.8 billion.
The Access America founders said last year that they planned to retain an interest in the merged company but wouldn’t exercise any management in Coyote.
UPS, whose full-truckload business is smaller than its less-than-truckload services, said on Friday it has worked with Coyote Logistics in the past to add capacity during peak holiday shipping seasons.
Founded in 2006, Coyote arranges U.S. truckload and less-than-truckload shipments for the food and beverage, consumer goods, paper, packaging, industrial and retail segments. “This high quality acquisition significantly increases UPS full-truckload scale and we are uniquely positioned to take advantage of exciting new revenue growth and synergy opportunities”. The deal is expected to be completed within the next 30 days.
Advertisement
“This deal shouldn’t move the needle at UPS, but could support shares of smaller brokers near-term by driving further consolidation speculation”, Susquehanna Financial Group analyst Bascome Majors wrote in a note on July 22, when Bloomberg reported of a possible UPS-Coyote Logistics deal. Last year the company reported revenue of US$2.1 billion. The Chicago company will become a UPS subsidiary and continue to be headed by Jeff Silver. It matches the $1.8 billion sale of Cars.com in 2014.
