UPS to sell Coyote Logistics to RXO for 1.025 bln usd -2-

RXO sees deal 'significantly accretive' to adj EPS (Il Sole 24 Ore Radiocor) - New York, 24 Jun - RXO added that with the acquisition of Coyote Logistics it will be the third-largest provider of brokered transportation in North America.

The transaction is expected to be "immediately and significantly accretive" to adjusted diluted earnings per share and adjusted free cash flow, RXO added.

RXO said that it will continue to serve UPS's brokered transportation needs under a contract that runs through January 2030.

Coyote Logistics generated approximately 3.2 billion dollars in revenue in 2023 with approximately 470 million in gross margin and approximately 86 million of adjusted EBITDA.

RXO expects annualized cost synergies of at least 25 million dollars.

The transaction will be funded with a mix of equity and debt, including a 300 million dollar equity investment from MFN Partners and a 250 million equity investment from Orbis Investments, two of RXO's largest shareholders. The transaction is backstopped by fully committed financing and is expected to be neutral to leverage, it added.

RXO reaffirmed its second-quarter adjusted EBITDA outlook and continues to expect adjusted EBITDA 24-30 million dollars.

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(RADIOCOR) 24-06-24 19:02:25 (0593) 5 NNNN