RXO, Inc.’s Post

The mergers and acquisitions (M&A) landscape in 2024 is highly dynamic, and this trend is expected to persist throughout the year, maintaining its strong momentum...

Interesting! I wonder how this will change things in terms of how Coyote logistics is integrated into the systems of different players in the supply chain. From my experience working in LTL, how a broker becomes integrated with our operation can determine how successful the average shipment they send through our system is. By integration, I'm referring to the means in which a broker gets a quote for a shipment, books it, tracks it, coordinates its delivery, and resolves conflict. I'm sure a lot will stay the same procedurally at Coyote, but it would be interesting to pay attention to how RXO may tweak certain things in that area. Also, changes may only be proportional to how much Coyote ships LTL. The Coyote shipments I've encountered in the LTL environment may only be part of a TL iceberg. #LTLBroker #Integration #LTL

Let’s Go RXO

It’s time to GROW

RXO, Inc.’s recent acquisition of Coyote Logistics can only be characterized as a strong value-creating strategic move. It picks up Coyote, a Top 10 Domestic Transportation Management 3PL, for $1.025B at an estimated multiple of 11.9x EBITDA in a depressed market which is expected to rebound going into 2025. RXO will now have over $7B in gross revenue, making it the third largest Domestic Transportation Management 3PL in the U.S. after C.H. Robinson and J.B. Hunt Transport Services, Inc.. UPS purchased Coyote in 2015 for $1.8 billion at an estimated 16x EBITDA multiple. Now it has decided to divest and refocus on its core small package business where it has a commanding market position in the U.S. The cultural misalignment and subsequent management turnover at Coyote highlighted the challenges UPS faced in the competitive 3PL brokerage space. Overall, this transaction represents a strategic win for RXO illustrating the importance of strategic alignment and timing in M&A activities. #BusinessAcquisition #CorporateNews #Logistics #SupplyChain #Transportation #BusinessGrowth #Partnership #CompanyNews #LogisticsIndustry #RXO #CoyoteLogistics #BusinessExpansion #StrategicAcquisition #InnovationInLogistics #LogisticsSolutions

Continued consolidation in transportation/logistics… and why it matters to you With RXO’s recent $500M acquisition of Coyote Logistics, we're seeing yet another major consolidation in the logistics industry. As the big players continue to merge, smaller shippers and carriers are left with fewer options—and more pressure on pricing control. But what does this mean for the rest of the industry? Less competition means higher rates and limited flexibility for smaller players. Price control becomes centralized, giving larger companies more leverage. Smaller shippers may feel the squeeze as these mega-deals shift the market landscape.

GXO Logistics, Inc.' s acquisition of Wincanton is a significant move in the #logistics and #supplychain industry. It signals GXO's intent to expand its footprint and capabilities, particularly in Europe where Wincanton has a strong presence. This acquisition could potentially strengthen GXO's position in key markets, enhance its service offerings, and provide synergies that benefit both companies and their clients. However, as with any acquisition, there are also challenges to navigate, such as integrating operations, cultures, and systems. Overall, it's an interesting development that will likely reshape the competitive landscape in the logistics sector.

🌐 Strengthening Our Partnership Ecosystem at Bergen Logistics At Bergen Logistics, we believe that our clients’ success is directly linked to the strength of our partnerships. We’ve built a robust ecosystem with direct integrations that not only supports our clients but also empowers our partners to grow alongside us. 🤝 Our commitment is to create value-driven relationships that enhance our clients’ operations while driving innovation and growth for our partners. If you’re interested in learning more about how our partnership ecosystem can support your business, don’t hesitate to reach out. Let’s explore how we can work together to achieve greater success! #Partnerships #Logistics #SupplyChain #ClientSuccess #Growth #Innovation

NFI's acquisition of Transfix Brokerage & RXO's acquisition of Coyote, further strengthens arguments for consolidation in the brokerage space. With current market trends we think this process of consolidation may accelerate in 2025 with higher velocity M&A environment. Digital Freight Brokers may line up as prime candidates in the near future. What a change in valuation for brokerage- Coyote's valuation down from $ 1.8 B to just over a Billion $ after about 9 years is a significant change reflected in part to market realities- margin compression, over supplied capacity, high inflation & volatile volumes! Valuations are influenced by the financing environment and capital structure is influenced by the capital markets, with continued macroeconomic headwinds, we will likely see more structured deals in the foreseeable future. #freightbrokers #transportation #mergerandacquisition #capacityfinders #supplychain #privateequity

Canadian logistics firm TFI International Inc. to buy Daseke Inc. in $1.1 bln deal Canadian logistics company TFI International (TFII.TO) said on Friday it would buy Daseke (DSKE.O), an operator of flatbed and specialized trailers, in a $1.1 billion deal, including debt, to scale up its truckload business. TFI agreed to pay $8.30 in cash for each share of Daseke, representing a premium of 69% on Daseke's closing price on Dec. 21. The combined company's truckload segment is expected to generate about $3.6 billion in annual total revenue on a proforma basis and would become one of the largest truckload businesses in Canada, TFI said. #Logistics #3PL #Transportation #SupplyChain #acquisition