United Parcel Service has reached an agreement to purchase Richmond, VA-based Overnite Corp. for $1.2 billion in cash in order to expand its less-than-truckload (LTL) and truckload (TL) shipping services in North America.
The acquisition is expected to close in the third quarter. The deal requires regulatory approvals from the Securities and Exchange Commission, as well as approval of Overnite’s stockholders. Overnite’s board of directors has unanimously approved the agreement and recommended that shareholders approve it.
Overnite’s management is expected to remain in place to run the business, according to a statement from UPS headquarters in Atlanta.
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