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.
