ALAN PEAT IN A US$260-million (R1.7bn) deal UPS has taken over Menlo Worldwide Forwarding - a US$1.9-billion (R12.5bn) turnover subsidiary of CNF. The acquisition is to be paid for with US$150-m (R990m) in cash and the assumption of approximately US$110-m (726m) in long-term debt. Menlo is itself a global freight forwarder that provides airfreight and ocean forwarding and international trade management, including customs brokerage. A main muscle is in the heavy airfreight side of the business. It 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 currently operates in more than 175 countries and territories, and its customers include some of the world’s most recognised 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. No comment is yet available on the SA tie-up - but FTW gets the impression that it will be an amicable and complementary relationship.
UPS takes over Menlo Worldwide Forwarding
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