Please ensure Javascript is enabled for purposes of website accessibility

UPS Buying 2 Costa Rican Packaging Companies

By Caroline Bennett - Sep 4, 2013 at 5:19PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Deal expected to close by fourth quarter of 2013

United Parcel Service (UPS -0.50%) 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.

link

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool recommends United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

United Parcel Service, Inc. Stock Quote
United Parcel Service, Inc.
UPS
$205.31 (-0.50%) $-1.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.