UPS to acquire UK Lynx Express Ltd
In a move that will further strengthen its package delivery capabilities in the United Kingdom, UPS (NYSE:UPS) today announced an agreement to acquire LYNX Express Ltd., for $96.5 million (£55.5 million) in cash.
LYNX Express, one of the UK’s largest independent parcel carriers, is majority owned by the private equity firm Bridgepoint Capital (Nominees) Ltd. UPS expects to complete the transaction in the second half of 2005, subject to customary closing conditions.
The Nuneaton-based LYNX Express, in addition to its parcel delivery service, offers customers a broad suite of logistics and spare parts logistics services via a strong nationwide network and an experienced workforce. LYNX’s customers include some of the most recognised international brands across a broad range of industries, with company sales of $295 million (£170 million) for the fiscal year ended Oct. 2, 2004.
“LYNX Express is a well-established company whose network and capabilities strengthen our presence in the UK,” said Bill Caplan, managing director, UPS UK. “This acquisition is an ideal strategic fit for UPS where we have enjoyed strong business growth and a loyal customer base for many years. We will now be even better positioned to support companies across the UK with their domestic and international trade needs.”
UPS has offered service to and from the UK since the mid 1980’s and in this last quarter, enjoyed a nearly 8% gain in export volume growth from the UK compared to the same period last year.
David Burtenshaw, chief executive of the privately held LYNX, said: “We are looking forward to joining UPS’s organization and believe our customers will enjoy the benefits of UPS’s global network.”
As a result of the acquisition, UPS will continue to strengthen its presence in one of Europe‘s leading and most dynamic economies and offer an even broader base of customers access to UPS’s extensive global delivery network.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the flow of goods, information and funds. UPS offers customers in the UK a comprehensive service portfolio backed by a fully integrated ground and air network, superior technology and shipping systems and an experienced workforce. In addition, the company provides businesses in the UK customized supply chain, logistics and distribution solutions as well as multi-modal freight services through its UPS Supply Chain Solutions business unit. Headquartered in Atlanta, USA, UPS serves more than 200 countries and territories worldwide. UPS’s stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at www.ups.com.
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Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the US Securities and Exchange Commission, which discussions are incorporated herein by reference.
For more information, contact:
John Wheeler
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