UPS will expand its freight forwarding business with the purchase of San Francisco based Fritz Companies.

The company said the acquisition will allow it to offer "a broad, integrated portfolio of services for moving everything from small packages to heavy freight, by any mode of transport, anywhere in the world."
Fritz, founded in 1933, is one of the world’s largest freight forwarding, customs brokerage and logistics operations. It has 400 facilities in more than 120 countries around the world and more than 10,000 employees. Revenues for its most recent fiscal year were $1.6 billion.
The acquisition, valued at approximately $450 million, will be a tax-free, stock-for-stock merger in which Fritz shareholders will receive UPS Class B common stock. UPS expects to complete the transaction in second quarter of 2001.
UPS currently offers freight forwarding and customs brokerage through a number of subsidiaries.