ATLANTA, GA – UPS (NYSE: UPS) has announced a definitive agreement to acquire Estafeta, a prominent Mexican express delivery company. This strategic move is part of UPS’s ambitious ‘Better and Bolder’ strategy, aimed at solidifying its position as a premier global provider of small package and logistics services.
“With global supply chains evolving and Mexico playing an increasingly pivotal role in international trade, this acquisition positions UPS uniquely to meet growing demand,” said Carol Tomé, CEO of UPS. “By integrating UPS’s scale and capabilities with Estafeta’s extensive network and local expertise, we will provide unparalleled access to global markets and enhanced service efficiency for Mexican businesses.”
The acquisition builds upon a commercial collaboration initiated in 2020 between the two companies. Once combined, customers can expect comprehensive solutions from UPS, spanning small package delivery, healthcare logistics, and end-to-end supply chain services, under the unified ‘One UPS’ platform.
President and CEO of Estafeta, Jens P. Grimm, expressed enthusiasm about the partnership, stating, “We are thrilled to merge Estafeta’s 45-year legacy in logistics with UPS’s global stature. This move underscores our shared commitment to excellence, investment in our people, and community engagement. It marks a pivotal moment to accelerate our growth and empower Mexican businesses with seamless access to international opportunities.”
The acquisition is slated to be finalized by the end of this year, pending customary closing conditions and regulatory approvals. Financial details of the transaction were not disclosed and will be further discussed during UPS’s upcoming second-quarter investor conference call scheduled for 8:30am ET on July 23, 2024.
The agreement underscores UPS’s strategic vision to enhance connectivity and efficiency in global logistics, leveraging Estafeta’s established presence to expand its footprint in Mexico and strengthen ties between Mexico’s burgeoning economy and global markets.