UPS to acquire Mexican express delivery company Estafeta

NYSE-listed UPS has entered into an agreement to acquire Estafeta, a leading Mexican express delivery company.

The acquisition is a key part of UPS's Better and Bolder strategy, aimed at becoming the world's premium international small package and logistics provider, says an official release.

“Global supply chains are shifting, Mexico's role in global trade is growing, and Mexican SMB and manufacturing sectors are looking for reliable access to the U.S. market," says Carol Tomé, Chief Executive Officer, UPS. "There is no better way to capitalise on these trends than by combining the size and scale of UPS with Estafeta. As the shift to nearshoring continues, our combined business will give customers in Mexico unprecedented access to global markets with seamless service and greater efficiency.”

The acquisition is an evolution of a commercial agreement established between the two companies in 2020, the release added. "When the two companies are combined, customers can rely on UPS’s integrated solutions that link small packages, healthcare logistics and end-to-end supply chain solutions, creating a differentiated One UPS advantage."

Jens P. Grimm, President and CEO, Estafeta says: "We’re excited to combine Estafeta’s proud, 45-year logistics legacy and our expertise with that of UPS, a company that shares our values of service excellence, investing in people and community engagement. Today’s announcement is a testament to the hard work and dedication of our people and the trust of all our customers, vendors and suppliers across Mexico. This is the right time to accelerate our growth, and UPS will help connect our customers to new, global opportunities, and strengthen the connection of Mexico’s growing economy to the rest of the world.”

The acquisition is likely to close by the end of this year, subject to customary closing conditions and regulatory approvals, the release added.

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