UPS, a world leader in global logistics has announced early this month that it will purchase two Costa Rican companies namely, Union Pak de Costa Rica, S.A. and SEISA Brokerage. Union Pak is a small package delivery while SEISA is a brokerage company. Both companies have long been Authorized Service Contractors (ASC) of UPS in Costa Rica. The transaction will be finalized by the fourth quarter of this year.
UPS’ decision to purchase the two companies was reached because of the expanding economy of Costa Rica. The International Monetary Fund forecasted that Costa Rica's annual import and export growth will rise to an annual average of seven percent over the next five years. The country will then benefit from the wide array of UPS services which include small package delivery, freight forwarding, brokerage and contract logistics. The acquisition of the two companies will enable Costa Rica to have access to multi-modal services including ocean and air freight; thereby, enhancing their trade among Latin American countries and the US. On the other hand, with the purchase of Union Pak, UPS will be able to serve various industries in Costa Rica specifically those in the high technology sector and the manufacturers of medical device. Moreover, UPS will gain from SEISA’s service of same day customs clearance and package shipment deliveries within the Costa Rican Free Trade Zone.
The move to purchase the two Costa Rican companies is in line with UPS’ strategy to invest in global networks to better serve the growing need for logistics services of customers worldwide. UPS has also recently acquired Hungary’s CEMELOG and Vietnam’s VN Post Express.
References
Finance.yahoo.com. (2013, September 4). UPS to purchase two Costa Rican companies; boosts customer access to global markets. Retrieved from finance.yahoo.com: http://finance.yahoo.com/news/ups-purchase-two-costa-rican-182640471.html
