Charlotte’s RXO Inc. Becomes Third-Largest Freight Broker in North America After Acquiring Coyote Logistics

Charlotte’s RXO Inc. Soars to Third-Largest Freight Broker in North America

In an exciting development for the city of Charlotte, RXO Inc. has officially claimed the title of the third-largest freight broker in all of North America! This milestone comes right after RXO completed its acquisition of UPS’ logistics business unit, known as Coyote Logistics, for a whopping $1.025 billion.

From Eighth to Third

Just a few moments ago, RXO announced that this big move has propelled the company from the eighth-largest position to a solid third place in the freight brokerage world. As RXO continues to grow, it eagerly anticipates the benefits of this acquisition—namely a larger customer base, an enhanced market position, and a more extensive carrier network. It’s a game-changer for the company!

What This Means for Customers

RXO’s CEO, Drew Wilkerson, expressed his excitement in a recent statement, saying, “This acquisition enables us to provide customers with even more capacity.” With the company’s larger scale, he explained, it would now offer carriers access to more freight, ultimately benefiting everyone involved. That sounds like a win-win!

Meet Coyote Logistics

For those who might be unfamiliar, Coyote Logistics brings a robust offering to RXO’s portfolio. Coyote, with its 15,000 customers and 2,500 employees, is known for providing extensive logistics services. RXO, itself a well-respected provider of asset-light transportation solutions, had around 4,000 customers and 2,150 employees before the acquisition. By integrating Coyote’s workforce and advanced technology, RXO is set to amplify its capabilities.

Expanded Offerings Ahead

This acquisition not only enhances RXO’s tech-enabled truck brokerage services but also includes managed transportation, freight forwarding, and last-mile delivery solutions. With the addition of Coyote’s resources, RXO is poised to deliver even more comprehensive services to its clients across the country.

A Bright Future

As part of this transformative deal, RXO has secured a lucrative multiyear commercial agreement with UPS, which allows RXO to provide freight brokerage services to the logistics giant until January 2030. Wilkerson mentioned in a conference call back in June that this strategic partnership will pave the way for long-term revenue and earnings growth for RXO.

Financial Growth on the Horizon

The numbers tell a compelling story. RXO currently boasts annual revenues nearing $4 billion. After absorbing Coyote Logistics into its operations, that figure is expected to surge to a jaw-dropping $7.1 billion per year. Talk about substantial growth!

A Quick History Recap

In 2015, UPS initially acquired Coyote for an estimated $1.8 billion, so this recent sale has drawn significant attention throughout the industry. RXO’s financial advisors for this deal were none other than Goldman Sachs & Co., with legal guidance provided by Paul, Weiss, Rifkind, Wharton & Garrison LLC.

Looking Ahead

As RXO moves forward, integrating Coyote’s assets and talent into its framework will be a key focus. The company aims to maintain its spectacular growth trajectory and continue enhancing its offerings. As a community, Charlotte has every reason to cheer as RXO steps into this pivotal role in the logistics landscape!

In conclusion, with such a substantial acquisition made by RXO Inc., the freight brokerage world is bound to see some vibrant changes ahead. It’s an exciting time for both RXO and Charlotte, as they gear up for a dynamic future!