In a move designed to greatly expand its overseas business, UPS last month said it had reached a deal to buy Menlo Worldwide Forwarding operations from CNF Inc. of Palo Alto, Calif. The consummation of the purchase would give UPS access to Menlo's air and ocean forwarding operations in more than 175 countries. This is the second major acquisition of a freight forwarder by the Atlanta-based transportation giant, which bought most of Fritz Companies in 2001.

"This is another indication that UPS is serious about expanding beyond their package-delivery business and taking a greater role in the supply chain management field," said Robert Dahl, a project director at the consulting firm, Air Cargo Management Group in Seattle.

UPS said it would acquire Menlo Worldwide Forwarding for $150 million in cash and assumption of its debt obligations of approximately $110 million. The parcel express and logistics giant—dubbed "Brown" in its media commercials—will also acquire Menlo Worldwide's hub operations in Dayton, Ohio, as well as its expedited service, Menlo Worldwide Expedite!, and its international trade unit, Menlo Worldwide Trade Services.

Formerly known as Emery Worldwide, Menlo Worldwide reported gross revenues of $1.9 billion in 2003. The sale does not include Menlo Worldwide Logistics, Menlo Worldwide Technologies, Vector SCM, or Con-Way Transportation Services.