UPS Venture Will Expand Foothold
A Turkish partner will expand manage operations and customer relationships through the greater region.
June 26, 2009
UPS has entered into a joint venture with a Turkish partner that the package delivery company uses to provide shipping services in the Mediterranean republic. Terms of the transaction were not disclosed.
The joint venture will be based in Dubai and will become UPS’ hub, coordinating coordinate all of the individual relationships and service efforts in the Middle East, Turkey and Central Asia region.
According to UPS, Haluk Undeger, currently the chief executive of the small package company Unsped Paket Servisi San ve Ticaret A.S., will own a minority stake in the joint venture. UPS will own a majority of the venture.
In speaking with MergersUnleashed, UPS spokesperson Susan Rosenberg said the company present provides services to the 21 countries that are part of the new venture, either through an independent agent or a joint venture.
According to a Jesup & Lamont analyst report obtained from ThomsonOne Analytics, UPS has gained in market share in the U.S. in every segment except its small freight shipping business. In addition, the report noted that the company’s European business is also seeing growth.
In November, DHL said it would exit operations in the U.S., attributing its exit to low-priced competitors.
During a conference call with UPS shareholders, Scott Davis, the shipping company’s chairman and CEO said he expects an slower economic recovery in Europe and said at the time that the company “is managing its operations effectively.”
The Turkish company Unsped Paket Servisi experienced 18 percent revenue growth over the past three years, on a compounded annual growth rate.
There are no other partial owners of the joint venture, Rosenberg said. The transaction was led by Ron Chang, UPS vice-president of M&A. Outside advisors were not disclosed.
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