UPS (NYSE: UPS) announced on Monday it has entered an agreement to acquire Mexican express delivery company Estafeta.
According to a news release from UPS, this acquisition is a key part of the company’s Better and Bolder strategy aimed at becoming the world’s premium international small package and logistics provider.
“Global supply chains are shifting, Mexico’s role in global trade is growing, and Mexican SMB and manufacturing sectors are looking for reliable access to the US market,” said UPS CEO Carol Tomé in the emailed release. “There is no better way to capitalize on these trends than by combining the size and scale of UPS with Estafeta. As the shift to nearshoring continues, our combined business will give customers in Mexico unprecedented access to global markets with seamless service and greater efficiency.”
Headquartered in Mexico City, Estafeta is a privately owned provider of integrated logistics solutions. The company has 45 years of experience operating an extensive domestic network serving companies of all sizes.
“We’re excited to combine Estafeta’s proud, 45-year logistics legacy, and our expertise with that of UPS, a company that shares our values of service excellence, investing in people and community engagement,” said Jens P. Grimm, president and CEO of Estafeta, in the release. “Today’s announcement is a testament to the hard work and dedication of our people and the trust of all our customers, vendors and suppliers across Mexico. This is the right time to accelerate our growth, and UPS will help connect our customers to new, global opportunities, and strengthen the connection of Mexico’s growing economy to the rest of the world.”
The release states that when the two companies are combined, UPS’ integrated solutions that link small package, health care logistics and end-to-end supply chain solutions will be a boon to customers in Mexico.
The acquisition is planned to close by the end of this year, subject to regulatory approvals. The value and terms of the transaction have not been disclosed. The transaction will be further discussed on UPS’ second-quarter investor conference call at 8:30 a.m. ET on Tuesday.
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