UPS is expanding its presence in the U.K. with the recently announced acquisition of Freightex, a U.K.-based asset-light provider of truckload, less-than-truckload, specialized and refrigerated over-the-road services.
The acquisition helps UPS establish a presence in the growing U.K. and European third-party logistics (3PL) over-the-road brokerage transportation market and launches a new global and regional UPS growth platform from an established base of customers and carriers. The transaction follows UPS’s acquisition of Coyote Logistics in August 2015. Coyote is a truckload brokerage provider in North America that is very similar to Freightex’s business model.
“The U.K. 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, 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.”
Mr. 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 U.K. 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,” Mr. 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.”