Saturday, March 03, 2001
UPS to buy shipper
Mail Boxes Etc. adds retail boost
The Associated Press
ATLANTA United Parcel Service Inc. Friday said it has agreed to buy retail shipping franchiser Mail Boxes Etc. in a bid to capture a bigger share of the growing business in home and small-office shipments.
Mail Boxes Etc., a privately held subsidiary of U.S. Office Products, has franchised 4,300 stores, including 900 in 29 countries outside the United States. Terms of the all-cash deal for San Diego-based Mail Boxes Etc. were not disclosed.
This is another way to broaden our presence on the retail side, UPS spokesman Norman Black said. The growth of e-commerce has made it very clear to us that the residential and small-office, home-office part of the market is going to continue to expand.
The purchase does not mean that UPS plans to abandon The UPS Store, a two-outlet retail shipping experiment the company started last year in Atlanta, he said.
UPS handles shipments from most MBE outlets and have had a strong relationship for more than 20 years, the companies said in a statement. Each store pays the company a percentage of its revenue.
The alignment of our brands and the retail expertise MBE and its franchisees bring to UPS will open doors of opportunity for us to better serve small businesses and consumers around the world, UPS chairman and chief executive Jim Kelly said.
The stores will be able to continue to offer service by UPS rivals, such as FedEx and DHL, Mr. Black said.
Mail Boxes Etc. chairman and chief executive Jim Amos, who was named chairman of the International Franchise Association this week, will continue to lead the company, which will become a UPS subsidiary.
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