UPS Buys Freightex in 3PL Platform Expansion
10th January 2017
UPS has bought Freightex, a UK-based asset-light provider of truckload, less-than-truckload, specialized and refrigerated over-the-road services. Terms of the January 3rd, 2017 transaction have not been disclosed.
UPS is confident about third-party logistics (3PL) growth in Europe and says the acquisition immediately establishes its presence in the growing UK and European 3PL over-the-road brokerage transportation market and launches a new global and regional UPS growth platform from an existing base of customers and carriers.
The deal follows UPS’s acquisition of Coyote Logistics in August 2015. Coyote is a leading truckload brokerage provider in North America. Coyote and Freightex business models are complementary and UPS expects to share the best system technologies, business processes, as well as leverage customers and carriers across the two units.
“The UK and Europe are strategic 3PL freight brokerage growth markets for UPS and there is significant cross border opportunity,” said Alan Gershenhorn, UPS Chief Commercial Officer. “This acquisition provides UPS customers an immediate, knowledgeable and competitive U.K. and European presence. We intend to align Freightex with Coyote for greater efficiency and continue to invest for further growth.”
“We are excited to join the UPS organization and Coyote brokerage operations,” said Tim Phillips (pictured), Freightex’s Chief Executive Officer. “UPS and Coyote have industry-leading technology, a no-excuses customer service culture, and a proven record of success. We will improve our efficiency through Coyote’s technology and use of the UPS network, while continuing to out-service the competition and provide results that customers count on us to deliver.”
Phillips will continue to lead the Freightex business, which will operate as a wholly-owned subsidiary of UPS.