UPS has bought Freightex, the asset-light provider of truckload, and less-than-truckload services, for an undisclosed sum.
“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.
The transaction 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.
“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 the continent and uses an asset-light model to match customers’ outgoing freight shipments with available trucking capacity in its network of carriers.
Freightex Ltd had a turnover of £22.5m for the year to 31st March 2016, and an operating profit of £618,000.
Tim Phillips, Freightex’s chief executive officer, said: “We are excited to join the UPS organisation and Coyote brokerage operations. 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 says the freight brokerage portion of the $174bn European 3PL market is growing at a faster rate than the total market and is expected to further expand as shippers and carriers further adopt the brokerage model.