Deutsche Post, owner of the DHL package-shipping service, has agreed to purchase Airborne Inc.'s ground operations and other assets for $1.05 billion in order to gain a U.S. truck delivery network and compete with FedEx and UPS.
Europe's biggest postal company will pay $21.25 a share in cash for the assets, Chief Executive Klaus Zumwinkel said.
Upon conclusion of the acquisition, Airborne's air operations will be separated from its ground operations and will become an independent public company called ABX Air Inc.
"The UPS/FedEx duopoly has a 79% share of the U.S. express delivery market, and the combination of DHL and Airborne will enable us to create a much stronger competitor, which will benefit a broader range of express delivery customers," said Carl Donaway, chairman and CEO of Airborne, who will become the CEO of the enlarged DHL business in the U.S.
"This is a pro-competitive transaction that has compelling benefits for shareholders, customers and employees," continued Donaway. "Although Airborne has been adjusting to a dynamic and changing marketplace, this merger will bring the company to another level of competitiveness in an industry that badly needs more competition."
"This combination will strengthen DHL's presence in the U.S., and our global presence will bring significant benefits to Airborne customers," said Uwe Doerken, CEO of DHL Worldwide. "We see great opportunity for DHL to build on the capabilities of the new combined company in the U.S. market, especially in the underserved small- and medium-sized business segments, and we are prepared to make a substantial long-term marketing investment to build a strong competitor able to provide increased value for U.S. customers."
Airborne is the third-largest air overnight parcel carrier in the United States, with an 18.8% market share in the air overnight category.
DHL has an extensive international parcel delivery network, with service to 120,000 destinations in more than 220 countries worldwide. Although DHL says it has the leading market share in international express delivery outside the U.S., it has less than a 2% share of the U.S. air overnight domestic market today.
The International Brotherhood of Teamsters says it is closely monitoring the deal to ensure that the members' rights are protected. "We will monitor the progress of this acquisition to ensure that our members' interests are both fully represented and considered," said James P. Hoffa, general president. "We reserve all of our rights as outlined in our Airborne contracts."
The Teamsters say they represent more than 9,000 Airborne workers. This number includes about 800 pilots employed by ABX Air throughout the U.S., represented by Teamsters Local 1224 in Wilmington, Ohio, and approximately 8,000 drivers and dockworkers under the National Master Freight Agreement and other freight contracts at Airborne Express.
The transaction, which is subject to shareholder and regulatory approvals, is expected to be completed during the summer of 2003.
Europe's biggest postal company will pay $21.25 a share in cash for the assets, Chief Executive Klaus Zumwinkel said.
Upon conclusion of the acquisition, Airborne's air operations will be separated from its ground operations and will become an independent public company called ABX Air Inc.
"The UPS/FedEx duopoly has a 79% share of the U.S. express delivery market, and the combination of DHL and Airborne will enable us to create a much stronger competitor, which will benefit a broader range of express delivery customers," said Carl Donaway, chairman and CEO of Airborne, who will become the CEO of the enlarged DHL business in the U.S.
"This is a pro-competitive transaction that has compelling benefits for shareholders, customers and employees," continued Donaway. "Although Airborne has been adjusting to a dynamic and changing marketplace, this merger will bring the company to another level of competitiveness in an industry that badly needs more competition."
"This combination will strengthen DHL's presence in the U.S., and our global presence will bring significant benefits to Airborne customers," said Uwe Doerken, CEO of DHL Worldwide. "We see great opportunity for DHL to build on the capabilities of the new combined company in the U.S. market, especially in the underserved small- and medium-sized business segments, and we are prepared to make a substantial long-term marketing investment to build a strong competitor able to provide increased value for U.S. customers."
Airborne is the third-largest air overnight parcel carrier in the United States, with an 18.8% market share in the air overnight category.
DHL has an extensive international parcel delivery network, with service to 120,000 destinations in more than 220 countries worldwide. Although DHL says it has the leading market share in international express delivery outside the U.S., it has less than a 2% share of the U.S. air overnight domestic market today.
The International Brotherhood of Teamsters says it is closely monitoring the deal to ensure that the members' rights are protected. "We will monitor the progress of this acquisition to ensure that our members' interests are both fully represented and considered," said James P. Hoffa, general president. "We reserve all of our rights as outlined in our Airborne contracts."
The Teamsters say they represent more than 9,000 Airborne workers. This number includes about 800 pilots employed by ABX Air throughout the U.S., represented by Teamsters Local 1224 in Wilmington, Ohio, and approximately 8,000 drivers and dockworkers under the National Master Freight Agreement and other freight contracts at Airborne Express.
The transaction, which is subject to shareholder and regulatory approvals, is expected to be completed during the summer of 2003.
media brand
0 Comments
See all comments