UPS acquires Overnite Corp.
UPS has agreed to buy Overnite Corp. for $1.25 billion in cash in a transaction that is expected to close during the third quarter.
The acquisition "will allow UPS to expand its service portfolio by offering a variety of less-than-truckload and truckload services to its North American customers," according to UPS officials.
Richmond, Va.-based Overnite has two divisons, Overnite Transportation Co. and Motor Cargo.
Overnite Transportation Co. operates in all 50 states, plus Canada, Mexico, Puerto Rico, Guam and the U.S. Virgin Islands.
Motor Cargo -- a regional, less-than-truckload carrier -- serves the Western U.S., Canada and Mexico.
"With the addition of Overnite, UPS will become a top motor freight carrier," say UPS officials.
UPS Chairman and CEO Mike Eskew calls Overnite "a perfect fit for our company. We want to offer our customers the broadest portfolio of transportation and logistics services available from a single source and this is an all-important capability that we needed to have."
Overnite Corp. -- which has some 60,000 customers in all -- posted income of $63.3 million on revenue of $1.65 billion in 2004.