UPS Adds Ground Freight Options by Acquiring Overnite Corp. ($1.25 B)

[underpants]

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050516005578&newsLang=en

ATLANTA--(BUSINESS WIRE)--May 16, 2005--UPS (NYSE:UPS) and Overnite Corporation (NASDAQ: OVNT) today jointly announced a definitive agreement for UPS to acquire Overnite for $43.25 per share, or approximately $1.25 billion in cash.


The transaction will allow UPS to expand its service portfolio by offering a variety of less-than-truckload (LTL) and truckload (TL) services to its North American customers. It also will immediately position UPS as a top U.S. LTL carrier and comes just five months after the company expanded its air freight services by acquiring Menlo Worldwide Forwarding.

The acquisition, expected to close during the third quarter of 2005, is an all-cash transaction that will require regulatory approvals and the approval of Overnite's shareholders. The Overnite Board of Directors has unanimously approved the agreement and recommended approval by its shareholders.

Based in Richmond, Va., Overnite reported net income of $63.3 million in 2004 on revenue of $1.65 billion. The carrier serves more than 60,000 customers in the LTL and TL segments with operations in the U.S., Canada, Mexico, Puerto Rico, Guam and the U.S. Virgin Islands.

[CANDO]

1. This is fantastic news!

Overnite beat back the Teamsters a couple years ago, but with a major Teamster represented outfit such as UPS as their owners, they may be ready to go for representation because of the solidarity of all the UPS Teamsters backing them. This is really positive news!

[underpants]

3. Not if you are in the building across the river

Someone I know who works for Overnite called me this morning. NO ONE and I mean NO ONE aside from the Board knew about this. Complete a total surprise. Everyone is understandibly freaking out right now.

we'll see hopefully UPS will just let them keep doing what they are doing and everyone keeps their job. BTW- Overnite did bust up the unions just a few years ago, I am aware of that.

[MADem]

2. If this means prices go down if you don't care about delivery times

...that could seriously cut into USPS, or create economies for consumers. Interesting!