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Shipping News UPS Acquires Overnite Transportation Company
May 16, 2005
ATLANTA, May 16, 2005—UPS and Overnite Corporation today jointly announced a definitive agreement for UPS to acquire Overnite for $43.25 per share, or approximately $1.25 billion in cash. The transaction will allow UPS to expand its service portfolio by offering a variety of less-than-truckload (LTL) and truckload (TL) services to its North American customers. It also will immediately position UPS as a top U.S. LTL carrier and comes just five months after the company expanded its air freight services by acquiring Menlo Worldwide Forwarding. The acquisition, expected to close during the third quarter of 2005, is an all-cash transaction that will require regulatory approvals and the approval of Overnite's shareholders. The Overnite Board of Directors has unanimously approved the agreement and recommended approval by its shareholders. Overnite's management team is expected to remain in place to run the business. "This is an exciting time for Overnite and its customers and employees," stated Leo Suggs, Overnite's chairman, CEO and president. "We are pleased that UPS recognizes our commitment to quality service, our broad nationwide coverage and a trained and motivated workforce. We are confident in our ability to help UPS broaden its diverse service portfolio to its customers." “Overnite has been a strategic partner of ours for many years, and we look forward to the increased support and services that will occur as a result of this transaction,” stated John Finucane, Executive Vice President, PartnerShip. Overnite Corp. is one of America's leading less-than-truckload carriers with a 70-year heritage. Its principal operating company, Overnite Transportation Company, operates in all 50 states, Canada, Puerto Rico, Guam, the U.S. Virgin Islands and Mexico. Its other operating company, Motor Cargo, is a regional less-than-truckload carrier primarily serving the western United States, Canada and Mexico. Together, they form one of the largest less-than-truckload carriers in the United States with over 200 service centers and 14,200 employees. To read Overnite Transportation's letter to its customers, click here. More information will be posted on www.partnership.com as it is available. |
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