UPS has agreed to acquire Menlo Worldwide Forwarding, Inc.
, a subsidiary of CNF, for $150 million in cash and the assumption of approximately $110 million in long-term debt.
Menlo Worldwide Forwarding is a global freight forwarder that provides a full suite of heavy air freight forwarding services, ocean services and international trade management, including customs brokerage. It had $1.9 billion in gross revenues in 2003. 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. UPS will introduce new time-definite products such as overnight, two-day and deferred heavy air freight in North America.
Menlo Worldwide Forwarding currently operates in more than 175 countries and territories in the world. Menlo Worldwide Forwarding’s customers include some of the world’s most recognized brands across a broad range of industries, including pharmaceuticals, apparel, high tech/electronics, government, consumer goods and retail.
UPS expects to complete the transaction during the fourth quarter of 2004. The transaction is subject to customary closing conditions. The transaction is expected to be slightly accretive to earnings in 2005.
For more information, visit www.ups.com.