UPS has agreed to acquire Trans Courier Service (TCS) SRL, its authorized service contractor in Romania and will take 100 percent ownership of TCS as well. UPS said it expects this transaction to be complete by the end of next quarter. Financial terms were not disclosed.
UPS and TCS have a business relationship going back to 1990, when UPS initially rolled out shipper services in Romania through Romantrans SA, the parent company of TCS, according to a UPS statement. It added that TCS has served as UPS's authorized service contractor in Romania since it was founded as a separate entity in 2000. UPS said this development makes sense for them on various fronts, one being that it will be able to continue its service offerings to Romania-based shippers and augment its service offerings in one of the fastest-growing countries in the European Union.
According to the World Bank, Romania's GDP is forecasted for 5.9 percent growth this year. And in 2007, UPS saw a 10 percent gain in export volume compared to 2006.
"This agreement opens a wealth of opportunity for UPS customers seeking to do business to and from Romania," said Wolfgang Flick, president, UPS Europe, in a statement. "With direct control of our own network, UPS will have the flexibility it needs to expand operations and to invest in infrastructure, technology, brand presence and employee development. And our customers will have the confidence of knowing we can stay ahead of demand in a country that's growing GDP at almost three times the EU average."
TCS offers shippers a suite of international delivery services through a strong nationwide network backed by advanced shipping systems and technology and an experienced workforce, noted UPS. It has TCS facilities in Bucharest, Timisoara and Constanta and connects to UPS's global network with a flight operating between Bucharest and Cologne every weekday.
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