United Parcel Service announced it has agreed to acquire European logistics company TNT Express for $6.77 billion in cash.
Combined, the two companies will form a $60 billion global logistics entity. The deal will enable UPS to expand its footprint in Europe, Asia and Latin America, and generate an estimated 36 percent of revenue outside the U.S., up from 26 percent today.
Customers of the companies will see a greater product selection emerge as well as broader geographic delivery options, according to a joint statement.
“With this combination, both UPS and TNT Express will significantly enhance their ability to serve our combined customers’ complex global logistics needs,” says Scott Davis, UPS chairman and CEO. “The additional capabilities and broadened global footprint will support the growth and globalization of our customers’ businesses. At the same time, this positions us for future growth, which will benefit our employees and shareowners.
“I am convinced that together we will be the supplier and employer of choice in the express delivery industry,” adds TNT Express CEO Marie-Christine Lombard.