Communiqué d'UPS : Acquisition de Menlo Worlwide Forwarding
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ATLANTA, Oct. 5, 2004 – UPS (NYSE: UPS) and CNF Inc. (NYSE: CNF) today announced UPS has agreed to acquire Menlo Worldwide Forwarding, Inc., a subsidiary of CNF, for US$150 million in cash and the assumption of approximately US$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 US$1.9 billion in gross revenues in 2003.
The acquisition reinforces UPS’s strategy of providing broad supply chain solutions to enable global commerce. 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. This also means UPS will introduce new time-definite products such as overnight, two-day and deferred heavy air freight in North America.
“This acquisition is an ideal strategic and operational fit,” said Bob Stoffel, UPS senior vice president, Supply Chain Group. “Menlo Worldwide Forwarding is a well-established global air freight forwarder, with international trade capabilities, all of which complement UPS’s existing operations.
“Customers want to streamline their supply chains. The expanded solutions UPS can provide will help customers simplify global trade by giving them more options for moving goods around the world and by providing a single point of accountability.”
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.
W. Keith Kennedy, CNF chairman and interim chief executive officer, said: “The divestiture serves the best interests of our shareholders while enabling Menlo Worldwide Forwarding to join with one of the premier brands in the transportation industry.”
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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Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.
For More Information Contact:
Lynnette McIntire
UPS Supply Chain Solutions
678-746-7985
Teresa Finley
UPS Investor Relations
404-828-7359
Peggy Gardner
UPS Public Relations
404-828-6051
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______________________________________________________________
ATLANTA, Oct. 5, 2004 – UPS (NYSE: UPS) and CNF Inc. (NYSE: CNF) today announced UPS has agreed to acquire Menlo Worldwide Forwarding, Inc., a subsidiary of CNF, for US$150 million in cash and the assumption of approximately US$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 US$1.9 billion in gross revenues in 2003.
The acquisition reinforces UPS’s strategy of providing broad supply chain solutions to enable global commerce. 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. This also means UPS will introduce new time-definite products such as overnight, two-day and deferred heavy air freight in North America.
“This acquisition is an ideal strategic and operational fit,” said Bob Stoffel, UPS senior vice president, Supply Chain Group. “Menlo Worldwide Forwarding is a well-established global air freight forwarder, with international trade capabilities, all of which complement UPS’s existing operations.
“Customers want to streamline their supply chains. The expanded solutions UPS can provide will help customers simplify global trade by giving them more options for moving goods around the world and by providing a single point of accountability.”
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.
W. Keith Kennedy, CNF chairman and interim chief executive officer, said: “The divestiture serves the best interests of our shareholders while enabling Menlo Worldwide Forwarding to join with one of the premier brands in the transportation industry.”
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.
# # #
Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.
For More Information Contact:
Lynnette McIntire
UPS Supply Chain Solutions
678-746-7985
Teresa Finley
UPS Investor Relations
404-828-7359
Peggy Gardner
UPS Public Relations
404-828-6051
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