UPS has announced that it has entered into an agreement to acquire Mexican express delivery company Estafeta.

This acquisition is a key part of UPS' 'Better and Bolder' strategy, which aims to become the world's premium international small package and logistics provider.

"Global supply chains are shifting, Mexico's role in global trade is growing, and Mexican SMB and manufacturing sectors are looking for reliable access to the US market. There is no better way to capitalize on these trends than by combining the size and scale of UPS with Estafeta," said Carol Tomé, chief executive officer at UPS.

"As the shift to nearshoring continues, our combined business will give customers in Mexico unprecedented access to global markets with seamless service and greater efficiency," she added.

The acquisition is an evolution of a commercial agreement established between the two companies in 2020.

UPS said when the two companies are combined, customers can rely on UPS' integrated solutions that link small package, healthcare logistics and end-to-end supply chain solutions, creating a differentiated 'One UPS' advantage. 

"We're excited to combine Estafeta's proud, 45-year logistics legacy and our expertise with that of UPS, a company that shares our values of service excellence, investing in people and community engagement," said Estafeta Jens P. Grimm, president and CEO.

"Today's announcement is a testament to the hard work and dedication of our people and the trust of all our customers, vendors and suppliers across Mexico. This is the right time to accelerate our growth, and UPS will help connect our customers to new, global opportunities and strengthen the connection of Mexico’s growing economy to the rest of the world," he added.

UPS said the acquisition is targeted to close by the end of this year, subject to customary closing conditions and regulatory approvals.

The value and terms of the transaction are not being disclosed at this time.