UPS to Purchase Two Costa Rican Companies
UPS announced it will purchase assets and operations of two Costa Rican based companies; small package delivery company Union Pak de Costa Rica, S.A.; and brokerage company SEISA Brokerage. Both companies have long-standing relationships with UPS as Authorized Service Contractors (ASC).
The additions will allow UPS to better connect Costa Rica's expanding economy to regional and world markets through the UPS network. For Costa Rican shippers, UPS will be better positioned to provide customers one source for small package, freight forwarding, brokerage, and contract logistics, with a stronger link to UPS's global transportation network.
Access to multi-modal services including ocean and air freight will improve customers' ability to ship across borders, boosting export trade lanes within Latin America and to the U.S.
Union Pak de Costa Rica serves various industries with an emphasis on high-tech and medical device manufacturers. SEISA Brokerage provides same day customs clearance and delivery of package shipments within the Costa Rican Free Trade Zone, which eases cross border trade for customers.
"UPS has enjoyed a successful relationship with these two companies," said Romaine Seguin, president, UPS Americas region. "With the ownership of these operations in Costa Rica, UPS can provide customers the full suite of logistics services and global trade expertise. UPS continually invests in its global network and these additions illustrate the company's increasing commitment to serving the needs of customers in Costa Rica, and throughout Latin America."
UPS has enjoyed solid growth in Costa Rica since it established its presence in 1990, according to the company. With trade agreements in place with Canada, China, Mexico and the U.S., Costa Rica's annual import and export growth is forecast to grow an annual average of seven percent over the next five years, according to the International Monetary Fund. In addition to its small package ASC, UPS provides services in Costa Rica through UPS Air Cargo, and UPS Supply Chain Solutions.
UPS expects to complete the transactions in the fourth quarter of 2013 subject to customary closing conditions. Terms of the deal are not disclosed.