UPS to Buy Overnite for $1.25 Billion

The deal comes just five months after Atlanta-based shipping giant bought Menlo Worldwide Forwarding.

United Parcel Service Inc., the world’s largest package-delivery company, announced that it will acquire Richmond, Virginia-based Overnite Corp. for about $1.25 billion in cash.

The transaction will allow UPS to expand its “less-than-truckload” services, added the Atlanta-based company added, and help it grow its Supply Chain Solutions business, helping customers more easily synchronize the movement of goods, information, and funds.

The deal comes just five months after UPS bought Menlo Worldwide Forwarding, which expanded its international reach.

“Overnite is a perfect strategic fit for our company,” said UPS chairman and chief executive officer Mike Eskew, in a statement. “We want to offer our customers the broadest portfolio of transportation and logistics services available from a single source, and this is an important capability that we needed to have.”

Overnite stockholders will receive $43.25 per share, nearly half again as much as the company’s Friday closing price of $29.58. The deal, which has been approved by Overnite’s board of directors, is expected to close in the third quarter.

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