Freightex, a UK-based freight forwarder, has been acquired by package delivery giant, UPS for an undisclosed sum.

Freightex customers will gain the benefits of scale, reach, and access to a broad integrated portfolio of shipping solutions for all their supply chain management and shipping needs through UPS’s world-wide network. In turn, Freightex operations will provide UPS customers with a UK and European solution where brokered freight movements provide the most competitive option.

This deal follows UPS’ acquisition of North American freight forwarder Coyote Logistics in August 2015. Freightex will be operating under the Coyote business unit through the Supply Chain and Freight segment.

Freightex chief executive Tim Phillips will continue to lead the business, which will operate as a wholly-owned subsidiary of UPS.

Accountancy firm Kingston Smith and legal firm Faegre Baker Daniels advised Freightex on the deal, while UPS was advised by DLA Piper.

Freightex was founded in 2001, and recorded revenues of £22.5 million in the year to the end of March 2016, up 12 per cent, while pre-tax profits grew 2 per cent to £632,000. It employs 40 people in Dover, and 85 across its eight sites.

The firm uses a network of lorry and truck businesses to arrange transport of goods across Europe for its customers, from truckloads to half-truckloads and temperature-controlled or specialist transportation.

The European third-party logistics market, in which Freightex operates, is projected to be worth £143 billion, and growing at a faster rate than the total shipping market.