UPS to acquire nearly 50-year-old Mexican delivery company

UPS will soon acquire a nearly 50-year-old delivery company based in Mexico as part of the company’s plan to become the top delivery service in the world. 

UPS has entered into an acquisition agreement with Estafeta, which is expected to close by the end of the year. The acquisition of Estafeta will include six Boeing 737-400 freighters, along with maritime, railway, and trucking services, reported AirCargoNews.

“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 US market. There is no better way to capitalize on these trends than by combining the size and scale of UPS with Estafeta,” said UPS chief executive Carol Tome. “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.”

UPS is acquiring the Mexican company as part of their “Better and Bolder’ strategy aimed at becoming the “world’s premium international small package and logistics provider.”

“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,” said president and chief executive of Estafeta Jens Grimm. “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 financial and logistical terms of the agreement have not been released.