United Parcel Service (UPS -0.07%) today announced plans to purchase all operations and assets from package company Union Pak de Costa Rica and brokerage company SEISA Brokerage, both of which have long served as "authorized service contractors" for UPS. Terms have not been disclosed, but the deal is expected to close within the fourth quarter of 2013.
The transaction gives UPS additional access to Costa Rican shippers, along with multimodal services including ocean and air freight to boost efficiency of its export trade lanes. UPS has "enjoyed a successful relationship" with both SEISA and Union Pak in the past, said Romaine Seguin, president of the UPS Americas region, in the company press release. Seguin was quoted as saying the transaction will help UPS provide U.S. and Latin America customers with "the full suite of logistics services and global trade expertise."
According to UPS: "Union Pak de Costa Rica serves various industries with an emphasis on high-tech and medical device manufacturers. SEISA Brokerage provides same-day customs clearance and delivery of package shipments within the Costa Rican Free Trade Zone, which eases cross-border trade for customers."
UPS has had a presence in Costa Rica since 1990. According to the company, Costa Rica's annual import and export growth is forecast to grow an annual average of 7% over the next five years.
Since the start of 2013 UPS has seen its stock rise from $73.73 per share to $85.58, a 16% increase. The company has seen its annual revenue rise 5% since 2008.
