UPS to Buy Overnite Transportation

Rumors in the last two months that UPS was on the acquisition trail focused on U.K.-based third party logistics company Exel, which meant the announcement that UPS would actually be purchasing the non-union, less-than-truckload motor carrier Overnite Transportation a bit of a surprise.

The announcement comes on the heels of the acquisition of Menlo Worldwide Forwarding which was announced last fall and completed this year.

The all-cash deal is expected to close during the third quarter of 2005, pending regulatory approvals and the approval of Overnite shareholders.

Overnite reported net income of $63.3 million in 2004 on revenues of $1.65 billion.