United Parcel Service (), the nation’s largest package-delivery company and No. 1 in the Transport Topics 100, this week increased its presence in the logistics industry and international trade by agreeing to purchase the Fritz Cos. () for about $510 million, mostly in stock.
San Francisco-based Fritz is a non-asset-based freight forwarder that specializes in moving loads of 500 pounds or more in international trade. It has 10,000 employees working in 400 offices in 120 countries and annual revenue of $1.6 billion. UPS’ 1999 revenue exceeded $27 billion.
Founded in 1933, Fritz will bring UPS capabilities in ocean, air and ground forwarding, plus expertise in customs brokerage. The agreement must be ratified by Fritz’s stockholders.
The Fritz offer, announced Jan. 10, would be the first time UPS has used its recently issued common stock as a currency for an acquisition. When the Atlanta-based transportation giant went public in November 1999, its executives said one of the major reasons for doing so was to make stock-only acquisitions possible.
For the full story, see the Jan. 15 print edition of Transport Topics. .
