UPS to buy Europe’s No. 2 package delivery outfit
AMSTERDAM | United Parcel Service Inc. said Monday it will buy Netherlands-based TNT Express NV for $6.77 billion in a cash deal.
Atlanta-based UPS is the world’s largest delivery company, while TNT, headquartered in Hoofddorp, Netherlands, is the second-biggest express mail company in Europe behind DHL, which is owned by Germany’s Deutsche Post. The combination will have 475,000 employees worldwide and increase UPS’ international sales to around 36 percent of its total from 26 percent at present.
“Why is TNT very attractive?” asked UPS Chief Financial Officer Kurt Kuehn at a news conference in Amsterdam. Because it has “operations in areas where we’re underserved. Brazil. Australia. The Middle East. The road and train network in Europe.”
He said UPS hopes to further boost its international sales to 50 percent in the next five years.
The agreed deal, UPS’ largest ever acquisition, offers TNT shareholders $12.6 per share. TNT’S largest shareholder, Dutch postal company Postnl, said it has committed to tendering its 29.9 percent stake to UPS.