United Parcel Service agreed yesterday to purchase Overnite Corp., a less-than-truckload freight carrier, for $1.25 billion in cash.
The deal will expand UPS' offerings to its North American customers, letting it offer both truckload and less-than-truckload services and building its position as a single-source provider to customers, UPS said.
UPS, Atlanta, said it expected to complete the acquisition in the third quarter and would retain Overnite's present management team.
Overnite, Richmond, VA, recorded $1.65 billion in revenue in 2004 and has 14,200 employees serving 60,000 customers. It has 200 service centers with operations throughout North America as well as Puerto Rico, Guam and the U.S. Virgin Islands.
Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters