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UPS buys freight firm Overnite Corporation

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UPS buys freight firm Overnite Corporation

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UPS, which is the biggest package delivery company in the world, is continuing its recent spending spree. The latest acquisition is the US freight moving firm Overnite Corporation, which runs fleets of trucks carrying heavier cargoes than packages. The price is almost one billion euros in cash. That means Overnite’s shares are being bought for 46% more than their price when the stock markets closed last Friday.

The deal is UPS’ largest single purchase ever and will take a big bite out the company’s war-chest of around four billion euros. Up till now shipping heavy freight has been a small percentage of the Atlanta, Georgia based company’s overall business. With this purchase it is moving to take on its rival Federal Express in an area of shipping where there is growing demand.