UPS to Acquire Estafeta, Enhancing Mexico’s Role in Global Trade

UPS has announced an agreement to acquire Estafeta, a prominent Mexican express delivery company. This acquisition forms a cornerstone of UPS's “Better and Bolder” strategy, which aims to solidify its position as the leading international small package and logistics provider.

“Global supply chains are shifting, Mexico's role in global trade is growing, and Mexican SME and manufacturing sectors are looking for reliable access to the US market. There is no better way to capitalize on these trends than by combining the size and scale of UPS with Estafeta. As the shift to nearshoring continues, our combined business will give customers in Mexico unprecedented access to global markets with seamless service and greater efficiency,” says Carol Tomé, CEO, UPS.

According to a UPS statement, this deal will help businesses of all sizes in Mexico and beyond take advantage of Mexico’s manufacturing boom, shifting global supply chains, and growing North American trade. As the shift to nearshoring continues, the combination of UPS and Estafeta will give customers in Mexico unprecedented access to global markets with seamless service and greater efficiency.

The acquisition represents the next step in a commercial agreement established between UPS and Estafeta in 2020. The integration of Estafeta’s operations will allow customers to benefit from UPS’s comprehensive solutions, including small package delivery, healthcare logistics, and end-to-end supply chain services. This combination will create a unique “One UPS” advantage in the market.

“We are excited to combine Estafeta’s proud, 45-year logistics legacy, and our expertise with that of UPS, a company that shares our values of service excellence, investing in people and community engagement. Today’s announcement is a testament to the hard work and dedication of our people and the trust of all our customers, vendors, and suppliers across Mexico. This is the right time to accelerate our growth, and UPS will help connect our customers to new, global opportunities, and strengthen the connection of Mexico’s growing economy to the rest of the world," says Jens Grimm, President and CEO, Estafeta.

The acquisition is expected to close by the end of this year, pending customary closing conditions and regulatory approvals. While the financial terms of the deal remain undisclosed, the transaction will be further discussed during UPS’s second-quarter investor conference call on July 23, 2024, at 8:30 am ET.

“The incorporation of Estafeta’s 45-year logistics legacy, focused on customer experience, people development, and community engagement, will add even greater value to our customers, especially those doing business in Mexico and looking to expand globally. This will also enhance our ability to meet the evolving needs of our customers in this region and beyond as supply chain changes continue to unfold,” says Francisco Ricaurte, President, UPS Mexico, to MBN.