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For Immediate Release
Provides Platform for New Products and Services For A Growing Market Segment
ATLANTA & SAN DIEGO --(BUSINESS WIRE)--(March 2,
2001) - UPS (NYSE: UPS) and MAIL BOXES ETC. today jointly announced that UPS
has agreed to acquire MBE.
MBE, a subsidiary of US Office Products (OTC BB: OFIS), is the world's
largest franchisor of independently owned and operated business,
communication and shipping centers worldwide.
The transaction will allow UPS and MBE to develop new opportunities in
such areas as small business services, e-commerce and financial services.
It also strengthens the important physical link UPS has to a growing segment
of retail customers, such as Internet consumers, SOHO (small office/home
office) owners and an increasingly mobile, technology-connected society.
The transaction is structured as an acquisition of the assets of MBE. The
parties expect to close as soon as practicable.
"This is a strategic fit that complements UPS's existing access channels and
underscores the common vision MBE and its franchisees share with UPS to meet
the changing needs of customers," said Jim Kelly, UPS chairman and CEO. "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 and MBE have had a strong relationship for more than two decades. In
recent years, both companies have unveiled industry-leading solutions for small
businesses and for shipping and returning goods sold and purchased over the
Internet by businesses and consumers. In addition, UPS and MBE have
complementary portfolios of business-focused financial services.
"In joining the UPS organization, we intend for our franchisees - the backbone
of the MBE family - to maintain the entrepreneurial spirit and independence
they need to run their businesses and provide world-class service options to
their customers, while benefiting from the mutually innovative thinking of
these two great companies," said Jim Amos, president and CEO of MBE.
MBE business will be conducted through a subsidiary of UPS under the guidance of
Amos, who this week was named chairman of the International Franchise
Association. MBE franchisees will continue to offer a broad array of
business services, products and shipping alternatives.
Kelly emphasized the importance of the entire global network of more than
11,500 UPS Authorized Shipping Outlets that includes other franchisors,
independent retail shipping and packaging stores and alliances with other
office product suppliers. UPS will continue to provide a range of programs
to support all other valued channels to provide convenient access to UPS
services.
MBE is comprised of more than 4,300 retail locations, including nearly 900
centers in 29 countries around the world. Headquartered in San Diego, Ca.,
MBE is located on the Web at www.mbe.com.
UPS is the world's largest express carrier and largest package delivery company,
serving more than 200 countries and territories around the world, with 2000 revenues
of $29.7 billion. Headquartered in Atlanta, Ga., the company is located on the Web
at www.ups.com.
Except for historical information contained herein, the statements made in
this release constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements include statements
regarding the intent, belief or current expectations of UPS and its
management regarding the company's strategic directions, prospects and
future results, as well as statements relating to the prospects and
financial condition of the combined operations of UPS and MBE, the parties'
ability to successfully consummate the transaction and integrate the
operations of the combined enterprises and other statements relating to
future events and financial performance. Such forward-looking statements
involve certain risks and uncertainties. Important factors may cause actual
results to differ materially from those contained in forward-looking
statements. These include the failure of the proposed transaction to be
completed for any reason, the competitive environment in which UPS and MBE
operate, economic and other conditions in the markets in which UPS and MBE
operate, strikes, work stoppages and slowdowns, governmental regulation and
other risks discussed in filings that UPS has made with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the fiscal
year ended December 31, 1999, which discussions are incorporated herein by
reference. |
