UPS Acquires UK Logistics Company Freightex (UPS), Investopedia

UPS Acquires UK Logistics Company Freightex (UPS) United Parcel Service Inc. (UPS) is expanding its presence in the U.K. and Europe. On Jan. 9, the logistics company announced acquired Freightex. The announcement was made via press release. The acquisition of Freightex gives UPS an immediate truck brokerage presence in the U.K. and Europe. According to the press release, UPS chose to acquire an existing brokerage, rather than growing organically, in order to speed up its entry into the U.K. and European logistics markets. In August 2015, UPS purchased Coyote Logistics. At the time of acquisition, Coyote was one of the top truck brokerages in North America. The UPS press release on Jan. 9 states that UPS plans to “share the best system technologies, business processes, as well as leverage customers and carriers” between Coyote and Freightex. (See also: Why do companies merge with or acquire other companies? ) UPS Chief Commercial Officer Alan Gershenhorn explained the synergies between the two companies, saying, “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.” According to UPS, the European third-party logistics market had grown to $174 billion by the end of 2016. The UPS press release stated freight brokerage in the U.K. and Europe is growing at a faster rate than the third-party logistics market as a whole. UPS announced that Freightex will continue to operate under current CEO Tim Phillips and will become a wholly owned subsidiary. (See also: 6 Wholly Owned Subsidiaries of Berkshire Hathaway .) The terms of the acquisition have not been released to the public.