ATLANTA: January 09, 2017. UPS has purchased Freightex, a U.K.-based broker of truckload, LTL, specialized and refrigerated road services.
The transaction follows the purchase in 2015 of Coyote Logistics, a similar company based in Chicago. UPS said both organizations are complementary and it expects to leverage customers across the two units based on shared share system technologies and business processes.
The acquisition, terms of which were not disclosed, is aimed at developing a presence in the U.K. and European 3PL truck brokerage market.
"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."
Citing data from Grand View Research, UPS said the European 3PL market reached a value of US$174 billion by the end of last year with the brokerage portion growing faster than the total market as shippers and carriers adopted the business model.
"We are excited to join the UPS organization and Coyote brokerage operations," said Freightex CEO Tim Phillips. "UPS and Coyote have industry-leading technology, a no-excuses customer service culture, and a proven record of success."
According to Grand View Research, key players in the 3PL market include C.H. Robinson Worldwide, UPS Supply Chain Solutions, J.B. Hunt, Kuehne + Nagel, DHL, and FedEx.
"UPS has many existing customers who will benefit from U.K. and European transportation brokerage capabilities," Gershenhorn added. "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."