UPS to target European SMEs
UPS could target small to medium size European acquisitions, the company’s CFO has announced. The admission dampens speculation that the express operator could bid for TNT’s parcels business.
UPS were linked to a TNT acquisition after the Dutch company announced a split of its mail and express divisions.
Speaking to German newspaper Boersen-Zeitung, Kurt Kuehn suggested that UPS would prefer to invest in SMEs rather than purchase major companies.
The newspaper cites Kuehn as saying: “If we buy companies that cost $50m, $100m or $200m that doesn’t mean that a company of our size burns up all its capital.”
Kuehn went on to say that UPS would rather buy supply chain services or specialised firms, over traditional operators.
Later in the interview, Kuehn told Boersen-Zeitung : “When we make acquisitions then with great probability it is a case of small or medium-sized targets.
“We are very interested in Central and Eastern Europe. Turkey, where we invested two years ago, is also a very important bridge between East and West for us.
“The markets are still fairly fragmented. If we act, then possibly not in the traditional parcel business but perhaps in supply chain services or in specialised customer segments.”
