United Parcel Service Inc., the worldÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s largest package-delivery company, agreed to buy trucking company Overnite Corp. for $ 1.25 billion to increase ground- shipment services.
UPS will pay $ 43.25 for each share of Overnite, the companies said in a statement. The price is 46 percent higher than OverniteÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s share price at the end of trading Friday. OverniteÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s board unanimously approved the agreement.
The acquisition, scheduled to close in the third quarter, will require regulatory approval and the approval of Overnite shareholders. OverniteÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s management will remain in place to run the business.
``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,ÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ Mike Eskew, UPSÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s chairman and chief executive officer, said in the statement.
Overnite, based in Richmond, Virginia, reported net income of $ 63.3 million in 2004 on sales of $ 1.65 billion. The company has more than 60,000 customers.