UPS offers $1.25 billion for Overnite

UPS has announced a definitive agreement to acquire national less-than-truckload (LTL) carrier Overnite Corp. 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 LTL and truckload services to its North American customers.

The deal would 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.

Based in Richmond, Va., Overnite reported net income of $63.3 million in 2004 on revenue of $1.65 billion. The carrier serves more than 60,000 customers in the LTL and TL segments with operations in the U.S., Canada, Mexico, Puerto Rico, Guam and the U.S. Virgin Islands.

"Overnite is a perfect strategic fit for our company," says Mike Eskew, UPS chairman and CEO. "We want to offer our customers the broadest portfolio of transportation and logistics services available from a single source and this is an important capability that we needed to have.”

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," says Leo Suggs, Overnite's chairman, CEO and president. "We are confident in our ability to help UPS broaden its diverse service portfolio to its customers."

With the addition of Overnite, the single-source solutions offered by UPS now will include a full suite of heavy freight services via air, ground and ocean.

www.ups.com
www.overnite.com

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