Package delivery company UPS has agreed to acquire global freight forwarder Menlo Worldwide Forwarding Inc. (formerly known as Emery), a subsidiary of CNF, for $150 million in cash and the assumption of approximately $110 million in long-term debt.
Included in the deal are Menlo Forwarding's global air and ocean network, its U.S. heavy air freight products and Expedited services, its expertise in Trade Services, its people, and its associated information technology. It had $1.9 billion in gross revenues in 2003.
The acquisition reinforces UPS's strategy of providing broad supply chain solutions to enable global commerce. As a result of the acquisition, UPS will expand its global capabilities and add guaranteed heavy air freight services around the world, enabling customers to reach the global marketplace faster. This also means UPS will introduce new time-definite products such as overnight, two-day and deferred heavy air freight in North America. All contracts and rates remain in place.
The acquisition is a strategic and operational fit, according to Bob Stoffel, UPS senior vice president, Supply Chain Group. Menlo's international trade capabilities will complement UPS's existing operations, Stoffel says.
Menlo Worldwide Forwarding currently operates in more than 175 countries and territories in the world. Menlo's customers are in a broad range of industries, including pharmaceuticals, apparel, high tech/electronics, government, consumer goods and retail.