UPS: Offloads Coyote Truck Brokerage Division; Price Looks Reasonable

United Parcel Service has inked an agreement to sell its asset-light truck brokerage division, Coyote Logistics, for roughly $1 billion in cash to logistics firm RXO, which was spun off from XPO in late 2022. The announcement isn't a surprise, as UPS disclosed earlier this year that it was pursuing strategic alternatives for the segment. We had agreed with management's decision to put Coyote up for sale, since the business always felt a bit off purpose for UPS as a unionized global parcel delivery specialist. UPS acquired Coyote in 2015 for around $1.8 billion.