Summary
United Parcel Service Inc. (UPS) has announced a significant strategic move with the signing of an Agreement of Merger with Overnite Corporation. This agreement outlines the terms for UPS's indirect wholly-owned subsidiary, Olympic Merger Sub, Inc., to merge with and into Overnite. Upon completion, Overnite will become a wholly-owned subsidiary of UPS. This acquisition represents a substantial investment for UPS, with an aggregate purchase price of approximately $1.25 billion, where each outstanding share of Overnite common stock will be acquired for $43.25 in cash.
Key Highlights
- 1UPS to acquire Overnite Corporation for approximately $1.25 billion.
- 2The acquisition will be executed through a merger with Olympic Merger Sub, Inc., a subsidiary of UPS.
- 3Overnite Corporation will become an indirect wholly-owned subsidiary of UPS upon closing.
- 4Each Overnite common stock shareholder will receive $43.25 in cash per share.
- 5The transaction is subject to Overnite shareholder and regulatory approvals.
- 6The deal is expected to close in the third quarter of 2005.
- 7The Agreement of Merger includes customary representations, warranties, and covenants.
Frequently Asked Questions
This filing announces UPS's entry into a material definitive agreement to acquire Overnite Corporation through a merger.
The aggregate purchase price for the acquisition of Overnite Corporation is approximately $1.25 billion.
The transaction's closing is contingent upon Overnite shareholder approval, regulatory approval, and other customary closing conditions.
UPS anticipates the transaction to close in the third quarter of 2005.