UPS has announced the purchase of Freightex, a UK-based asset-light provider of truckload, less-than-truckload, specialized and refrigerated road freight services. The acquisition immediately establishes UPS’s presence in the UK and European brokerage transportation market.
The transaction follows UPS’s acquisition of North American truckload brokerage provider Coyote Logistics in August 2015. The business models of Coyote and Freightex are complementary and UPS expects to share the best system technologies, business processes, as well as leverage customers and carriers across the two units. Terms of the transaction were not disclosed.
“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 UK and European presence. We intend to align Freightex with Coyote for greater efficiency and continue to invest for further growth.”
Freightex has eight locations across the UK and Europe and uses an asset-light model to match customers’ outgoing freight shipments with available trucking capacity in its network of carriers. The company routinely handles freight from shippers who require temperature-controlled, specialized, and other types of customized equipment.
“We are excited to join the UPS organization and Coyote brokerage operations,” said Tim Phillips, 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.
“UPS has many existing customers who will benefit from UK and European transportation brokerage capabilities. We will provide added value, helping customers and carriers streamline operations and have simplified visibility through the same Coyote system that they use in North America,” Gershenhorn said. “Freightex’s proven expertise and strong regional network, combined with Coyote’s technology, people, processes, and service reputation will present a best-in-class solution for customers.”
Analysis to follow…