As one of the United State’s leading shipping companies, UPS announced plans to expand their reach into Europe by acquiring a new company. The company plans to acquire the Dutch based company, TNT Express.
Looking to expand the gap between their rival, FedEx Corp, UPS’s plans for the new acquisition come at an opportune time. TNT Express is a strong leader in many smaller markets, but the size of the company hasn’t allowed it to grow as once hoped. Even with a steadily increasing stock price, TNT hasn’t been able to reach its financial goals. TNT began looking for investors to help move the company forward and thwart off any future chances of bankruptcy. With such a major buyer at hand, TNT quickly accepted the offer from UPS in order to move forward.
TNT Express is one of the fastest growing shipping companies in Asian and Latin American markets. Despite their near $11 billion in debt, UPS plans to acquire the company for $6.85 billion in hopes of boosting their sales by 36 percent and increase global market share in the shipping industry. UPS estimates that the new acquisition will allow for the company to do over $60 billion in worldwide sales.