UPS purchasing UK parcel carrier
07-25-2005, 12:36 PM
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UPS purchasing UK parcel carrier
UPS to buy Britain's Lynx Express
Mon Jul 25, 2005 1:57 PM BST
NEW YORK (Reuters) - United Parcel Service, the world's largest package deliver company, on Monday said it had agreed to buy independent parcel carrier Lynx Express for $96.5 million (55.5 million pounds) in cash, expanding its presence in Britain.
UPS, which posted a 21 percent rise in quarterly profit last week on a strong performance from its international business, said it expected to complete the transaction in the second half of 2005.
Nuneaton-based Lynx Express is majority owned by the private equity firm Bridgepoint Capital.
Managing director of UPS UK, Bill Caplan, said Lynx Express was an ideal strategic fit for UPS, which has offered service to and from Britain since the mid-1980s and reported an 8 percent rise in export volumes in the latest quarter.
"We will now be even better positioned to support companies across the UK with their domestic and international trade needs," he said in a statement.
Lynx Express, as well as its parcel delivery service, has a range of logistics and spare parts logistics services with a nationwide network. It posted sales of $295 million for the fiscal year ended October 2, 2004.
Atlanta-based UPS attributed its earnings growth in the second-quarter to its international expansion as the company reaped the benefit of an increase in global trade and a rise in direct-to-consumer shipping from electronic commerce.
International revenue in the quarter soared 23 percent to $2 billion, outpacing U.S. revenue growth by a factor of four.
Competitive threats from FedEx and the U.S. Postal Service have kept the company's growth in check, leading some analysts to fret over market share losses.
UPS shares closed at $72.92 on the New York Stock Exchange on Friday, having fallen about 15 percent so far this year which is line with a decline in the Standard & Poor's Air Freight and Couriers Industry Index.
Mon Jul 25, 2005 1:57 PM BST
NEW YORK (Reuters) - United Parcel Service, the world's largest package deliver company, on Monday said it had agreed to buy independent parcel carrier Lynx Express for $96.5 million (55.5 million pounds) in cash, expanding its presence in Britain.
UPS, which posted a 21 percent rise in quarterly profit last week on a strong performance from its international business, said it expected to complete the transaction in the second half of 2005.
Nuneaton-based Lynx Express is majority owned by the private equity firm Bridgepoint Capital.
Managing director of UPS UK, Bill Caplan, said Lynx Express was an ideal strategic fit for UPS, which has offered service to and from Britain since the mid-1980s and reported an 8 percent rise in export volumes in the latest quarter.
"We will now be even better positioned to support companies across the UK with their domestic and international trade needs," he said in a statement.
Lynx Express, as well as its parcel delivery service, has a range of logistics and spare parts logistics services with a nationwide network. It posted sales of $295 million for the fiscal year ended October 2, 2004.
Atlanta-based UPS attributed its earnings growth in the second-quarter to its international expansion as the company reaped the benefit of an increase in global trade and a rise in direct-to-consumer shipping from electronic commerce.
International revenue in the quarter soared 23 percent to $2 billion, outpacing U.S. revenue growth by a factor of four.
Competitive threats from FedEx and the U.S. Postal Service have kept the company's growth in check, leading some analysts to fret over market share losses.
UPS shares closed at $72.92 on the New York Stock Exchange on Friday, having fallen about 15 percent so far this year which is line with a decline in the Standard & Poor's Air Freight and Couriers Industry Index.
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