UPS announces sale of its Coyote Logistics unit to RXO for $1 billion By Reuters

(Reuters) – United Parcel Service, the world’s largest package delivery company, will sell its Coyote Logistics business unit to RXO for $1.025 billion, the companies said on Sunday.

The transaction will be financed through a combination of equity and debt, including a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments, said RXO, based in North Carolina, in a press release.

“The decision to sell our Coyote Logistics business allows us to focus even more on our core business,” said UPS Chief Executive Officer Carol Tome.

RXO helps shippers and carriers move freight.

UPS purchased Coyote Logistics from private equity firm Warburg Pincus for $1.8 billion in 2015 to expand its truckload services.