United Parcel Service agreed on Oct. 5 to buy the Menlo Worldwide freight forwarding division of CNF for $260 million. The carrier will pay $150 in cash and assume $110 million in debt for the $1.9 billion Menlo Worldwide, formerly Emery Worldwide. Menlo Worldwide offers heavy air freight forwarding services and ocean freight; it also features a customs brokerage. The sale is expected to close later this year.
Although UPS already offers freight forwarding and customs brokerage services through its Supply Chain Services division, Menlo’s specialty is heavy, guaranteed air freight services, which UPS doesn’t have. The acquisition will enable UPS to offer overnight, second-day, and deferred heavy air freight service throughout North America.