UPS completes Menlo purchase

[FreightNazi]

UPS Completes Purchase of Menlo Worldwide Forwarding
Monday December 20, 9:01 am ET

ATLANTA--(BUSINESS WIRE)--Dec. 20, 2004--UPS (NYSE: UPS - News) today announced it had completed the purchase of Menlo Worldwide Forwarding, Inc., formerly a subsidiary of CNF Inc. (NYSE: CNF - News).

"Menlo Worldwide Forwarding's capabilities complement UPS's ability to manage customers' shipments of any size, anywhere and in virtually any time frame," said Bob Stoffel, UPS senior vice president, Supply Chain Group. Menlo Worldwide Forwarding services soon will be sold under the UPS brand, he added.

Menlo Worldwide Forwarding, with 2003 gross revenues of $1.9 billion, is a leading global freight forwarder that provides a suite of heavy air freight forwarding services, ocean services and international trade management. The acquisition strengthens UPS's ability to provide a broad array of global supply chain solutions, adding guaranteed U.S. and worldwide heavy air freight services to its portfolio. UPS also can provide additional freight services and a range of time-definite products such as overnight, two-day and deferred heavy air freight across the globe.

The purchase price was $150 million in cash and the assumption of approximately $110 million in long-term debt. UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the flow of goods, information and funds. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at ups.com.


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UPS can run the Menlo air hub as a seperate operation for up to 12 months before they have to operate it with IPA pilots.

 

[Publishers]

When you can buy an almost $2.0billion a year operation for $150 million, someone is not making any real money. There has to be more to the story and the portion of this that is related to flying.