UPS Completes Purchase of Two Costa Rican Leading Logistics Companies

In October 31st, UPS (NYSE: UPS) closed the purchase of assets and operations of Union Pak and SIESA, two Costa Rican companies dedicated to small package courier services and customs brokerage services respectively. The target companies have a long-standing relationship with UPS as Authorized Service Contractors (ASC).

Throughout the entire transaction –which has been in development since January 2013- BLP acted as local counsel to UPS, providing advice on the structure of the deal, negotiations, anti-trust regulations, due diligence processes, purchase documents, and general advice on the legal integration processes of the operations. The BLP team was led by Partner Ronald Lachner, of the Corporate Law department who also heads the Transportation & Logistics practice, and Adriana Castro, Manager of the Mergers and Acquisitions practice.  The transaction also included expert advice from BLP´s Customs, Tax, Labor, Intellectual Property, Insurance, and Corporate departments, where associates Jose Martínez, Luis Chacón, Juan José Carreras, Giselle Reuben, Gloriana Picado, and Said Breedy were instrumental.  The transaction team is proof of BLP’s capability for providing integrated legal services for complex deals, an advantage that has certainly contributed to the firm’s success.

With these additions, UPS will be able to better connect Costa Rica's expanding economy to regional and world markets through its network. Union Pak de Costa Rica serves UPS´s general customers as well as various industries with an emphasis on high-tech and medical device manufacturers. SIESA brokerage provides same day customs clearance and delivery of package shipments for Costa Rican Free Trade Zone companies. This is a highly important step towards easing cross-border trade for customers.

“With the ownership of these operations in Costa Rica, UPS can provide customers the full suite of logistics services and global trade expertise. UPS continually invests in its global network and these additions illustrate the company's increasing commitment to serving the needs of customers in Costa Rica, and throughout Latin America”, said Romaine Seguin, President of UPS for the Americas region.

“UPS is a terrific client to work with. The talent and expertise of its M&A and Legal departments made this transaction go smoothly. This is definitely a move in the right direction for UPS”, indicated Ronald Lachner, Partner of BLP.

The UPS M&A team was led by James Eshleman and Matt Hutnan.

UPS was represented by Alix Apollon VP and Corporate Legal Counsel for the Americas Region.

US counsel for UPS was provided by the Houston office of King & Spalding, through Partner John Crespo and Associate Rodrigo Morales.

BLP acted as local counsel for UPS, through Partner Ronald Lachner and Adriana Castro, Manager of the M&A practice.

The sellers were advised by Steven M. Weinger, from the Miami office of Kurzban Kurzban Weinger; and Fernando Mora as local counsel from the Costa Rican firm of Mora, Mora, Bolaños.