UPS Acquires Estafeta, Offering Robust Global Logistics Solutions and Trade Opportunities for Mexico and Beyond
July 22, 2024
The transaction enables businesses to leverage the boom in Mexican manufacturing, shifts in global supply chains, and growth in North American trade.
Atlanta, July 22, 2024 – UPS (NYSE: UPS) today announced it has reached an agreement to acquire Estafeta, Mexico’s leading express company. This acquisition is a key component of the UPS “Better and Bolder” strategy aimed at becoming the world’s premier provider of international small package and logistics services.
“Global supply chains are shifting, with Mexico playing an increasingly significant role in global trade. Small and medium-sized enterprises (SMEs) and manufacturing sectors in Mexico are seeking reliable entry into the US market. There is no better way to capitalize on these trends than by combining UPS’s scale and reach with Estafeta,” said Carol Tomé, CEO of UPS. “As nearshoring continues to gain momentum, our combined business will provide unprecedented global market access for Mexican customers, offering seamless service and more efficient operations.”
The acquisition builds upon the commercial agreement established between the two companies in 2020. Post-merger, clients can rely on UPS’s integrated solutions that connect small packages, healthcare logistics, and end-to-end supply chain services to create a differentiated “one-stop-shop” advantage.
“We are thrilled to combine Estafeta’s proud 45-year tradition in logistics with our expertise at UPS. UPS is a company that shares the same commitment to excellence in service, invests in its employees and community engagement,” said Jens P. Grimm, President and CEO of Estafeta. “Today’s announcement reflects the hard work and dedication of our employees and the trust placed in us by all our customers, suppliers, and partners across Mexico. Now is an excellent time to accelerate our growth, with UPS helping our clients connect to new global opportunities and strengthen the ties between Mexico’s growing economy and the rest of the world.”
The acquisition is expected to be completed by year-end, subject to customary closing conditions and regulatory approvals. The value and terms of the transaction have not been disclosed. Further details will be discussed during UPS’s second-quarter investor call on July 23 at 8:30 AM Eastern Time.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies with $91 billion in revenue in 2023, offering a wide range of integrated logistics solutions to customers in over 220 countries and territories. The company operates on the principle of “advancing our world through the delivery of important things,” employing approximately half a million people who execute client-focused, people-first, innovation-driven strategies. UPS is committed to reducing its environmental impact and supporting the communities it serves globally. UPS also firmly supports diversity, equity, and inclusion.
Source: About UPS-US
