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UPS eyes growth in Mexico , plans for a strong peak season

By William B . Cassidy

Increased manufacturing activity in Mexico and double-digit growth in its cross-border supply chain business drove UPS to acquire Estafeta , the largest privately-owned package carrier and logistics integrator in Mexico , UPS executives said in announcing the deal .

The acquisition will bring UPS a company with 145 locations within Mexico and more than 300,000 daily shipments , UPS CEO Carol Tomé said during an earnings call with Wall Street analysts . The deal is squarely aimed at industrial customers .

“ By combining Estafeta with the resources we already have in Mexico and our global logistics network , we ’ ll greatly enhance our capabilities for customers shipping industrial products to the US ,” Tomé said .

Financial terms of the deal , which is expected to close by the end of the year , were not disclosed .

The acquisition is expected to boost UPS ’ top line in Mexico , combined with Estafeta revenue , to more than $ 1 billion , Tomé said . Importantly , Estafeta will give UPS a major step up in supporting Mexican manufacturing on the ground , as well as exports to the US .

The acquisition is the latest signal that the hottest freight market in North America is on the US-Mexican

18 Journal of Commerce | October 21 , 2024 www . joc . com