UPS Set to Buy Overnite Corp.
Shipping giant UPS Inc. announced this morning that it is acquiring trucking firm Overnite Corp. for about $1.25 billion in cash. Under the deal, Overnite stockholders will receive $43.25 for each Overnite share, a 46 percent premium over Overnite’s closing price of $29.58 on May 13. The buyout has been approved by Overnite’s board, according to reports, and is expected to close in the third quarter of this year.
Uni-Select Looking to Outsource IT Needs
Quebec-based Uni-Select Inc. is currently exploring the possibility of outsourcing its IT needs, according to a report from the Canadian Press. Uni-Select is currently in talks with an IT company called Conseillers en gestion et informatique, or CGI Inc.
New Book Tells the Story of Edelbrock
A new 325-page hard bound book tells the history of the performance aftermarket industry as it unfolds around Vic Edelbrock Sr. and other pioneers of performance. Names like Wally Parks, Alex Xydias, Ed Iskendarian and Ed Pink are intertwined in the story about the beginnings of the Edelbrock Equipment Company in the late 1930s.
Johnson Controls to Retool
Johnson Controls said it will invest $118 million to retool operations in the Holland and Battle Creek, Mich., areas, creating or retaining hundreds of jobs rather than move production to Ohio and Mexico. The auto parts maker is to receive $17.4 million in tax credits from the Michigan Economic Development Corp. for the combined projects. In addition, Holland Township granted the company a $4.8-million tax break and the City of Battle Creek offered to forgive $5.4 million in taxes.
Gryphon Investors Sells MSD Ignition
Gryphon Investors, a San Francisco-based private equity firm has sold MSD Ignition to management and ValueAct Capital. Gryphon Investors acquired El Paso, Texas-based MSD Ignition in April, 2004. MSD is a branded consumer products company that manufactures and sells high-performance automotive ignition components to aftermarket suppliers.
Striking Cooper Employees Will Return to Work
About 1,600 union workers at Cooper Tire & Rubber Co.’s Texarkana, Ark. plant are returning to work, ending a month-long strike. Last week, it was reported that a tentative agreement between the United Steelworkers of America Local 752L and Cooper had been reached.
Dover Motorsports Director Melvin Joseph Dies
Dover Motorsports announced yesterday the death of Melvin Joseph, a longtime member of its board of directors. Joseph died on Wednesday, April 6. The company said it wishes to express its deepest sympathies to the Joseph family.
GM Tries to Cut Up to 2,000 Workers
General Motors Corp.’s efforts to accelerate cuts to its salaried workforce helped the company’s stock rebound on Monday, a day when GM was one of the few automotive stocks to increase. GM is trying to cut up to 2,000 salaried positions in the first half of the year through early-retirement offers, said an official who is familiar with the situation. The move is an apparent acceleration of a plan already disclosed by the automaker.
United Components Reports Solid Growth in 2004
United Components, Inc. announced revenues of $238.3 million for the fourth quarter ending December 31, 2004. The company said revenue increased 4.2 percent over the year-ago quarter, with increases in all market channels except the original equipment service channel (OES). Net income for the quarter was $2.8 million. For the fourth quarter of 2003, net income was $1.8 million.
Publisher Buys J.D. Power
James Dave Power III, who has spent more than half his life building an idea into a trusted company that provides information to consumers and companies — especially about automobiles — agreed Monday to sell his research firm to the behemoth McGraw-Hill Cos. Inc.