Package-delivery company UPS Inc. on Monday said it is acquiring trucking firm Overnite Corp. for about $1.25 billion in cash, expanding its portfolio of ground-transportation services.
Under the deal, Overnite stockholders will receive $43.25 for each Overnite share, representing a 46 percent premium to Overnite's closing price of $29.58 on Friday.
Richmond, Va.-based Overnite, which serves more than 60,000 customers throughout North America, earned $63.3 million on revenue of $1.65 billion in 2004.
UPS, formerly known as United Parcel Services Inc., said Overnite's management team will remain in place.
"Overnite is a perfect strategic fit for our company," UPS Chairman and Chief Executive Mike Eskew said. "We want to offer our customers the broadest portfolio of transportation and logistics services available from a single source and this is an important capability that we needed to have."
The deal has been approved by Overnite's board and is expected to close during the third quarter, pending regulatory clearance and shareholder acceptance.