UPS Acquires More Logistics Firms, Continues Extending Service Parts Network
United Parcel Service (UPS) continued expanding its service-parts logistics operations Wednesday by acquiring two logistics companies that handle business in Asia, Latin America and the Caribbean.
UPS Logistics Group, a UPS subsidiary, said it had entered definitive agreements to acquire Miami-based Comlasa and Australian company Computer Logistics Solutions.
The Atlanta-based company said that these acquisitions, and recent purchases of other service-parts logistics companies, put 88 percent of U.S. businesses within two hours of service by UPS Logistics Group, and allows the division to quickly serve clients outside the United States.
Specific terms of the purchases weren't disclosed. UPS said that acquisition of Comlasa was subject to regulatory approvals and "satisfaction of customary terms and conditions," but didn't spell those out. No closing date was given. The company said acquisition of Computer Logistics Solutions was also subject to satisfaction of terms, but made no mention of regulatory approvals. Closing on Computer Logistics Solutions is expected by the end of the quarter, UPS said.
"Service parts logistics is one of those specialized services that defines customer satisfaction," Dan DiMaggio, chief executive officer of UPS Logistics Group, said in a statement posted on the company's Web site. "If you sell a computer or high-tech service and can't guarantee a rapid, almost instant response when something breaks down, you're going to lose customers. This is an industry that's a key part of UPS's future and by combining Comlasa with our network, we are reaching a critical mass for truly global services."
DiMaggio said the same thing about Computer Logistics Solutions in a statement posted to the site about that acquisition.
UPS' other recent service-parts acquisitions include Finon Sofecom of France and the U.S. service-parts network of Burnham of Atlanta, the latter which UPS indicated just two weeks ago it would acquire.
UPS said that Comsala provides service-parts logistics services in Latin America and the Caribbean. It provides on-site repair and refurbishment for computers. The company also manages inventory and delivers parts, in addition to supporting airlines and travel agencies, and providing computer-hardware and software support. It operates in 37 countries and its clients include such companies as IBM, Network Appliance, Compaq, Intermec and Getronics.
Computer Logistics Solutions serves at least 13 countries in Asia, according to UPS. Computer Logistics Solutions serves 50 cities in 13 nations. Its computer-related service-parts clients include 3Com, Ascend, Cisco, Compaq, DaimlerChrysler, Data General, Fujitsu and others.
UPS Logistics Groups said its service-parts network includes parts banks and distribution space in more than 420 places globally.
UPS quoted Bain & Co., which estimated the annual value of the global service-parts marketplace at $16.7 billion, U.S. currency.