ATLANTA, May 16 (UPI) -- Atlanta-based United Parcel Service Inc. has agreed to pay $1.25 billion to buy Overnite Corp., a Richmond, Va., shipping company.
The deal, which analysts said lets UPS expand its North American ground operations and better compete with Fedex Corp., is worth $43.25 per share or $1.25 billion, MarketWatch reported Monday.
The agreement will "immediately position UPS as a top U.S. less-than-truckload carrier, and comes just five months after the company expanded its air freight services by acquiring Menlo Worldwide Forwarding," UPS said.
Overnite is a shipper that offers a range of options from long-haul truck transport to shorter-range services for smaller loads. The company has a fleet of 6,700 truck tractors and 22,000 trailers.
Overnite's principal operating company, Overnite Transportation Co., operates in all 50 states, and in Canada, Puerto Rico, Guam, the U.S. Virgin Islands and Mexico.
