UPS, Rollins Swap Units, Form Alliance

In its first strategic move since going public, United Parcel Service said it will acquire the assets of Rollins Logistics and, in a separate transaction, sell its UPS Truck Leasing unit to Rollins Truck Leasing Corp.

The two companies also agreed to an exchange of services in which UPS will provide logistics management and dedicated contract carriage services to Rollins and its customers.

For its part, Rollins will provide lease and rental vehicles as well as maintenance services to Worldwide Dedicated Services, a unit of the UPS Logistics Group.

The deal adds more than 100 dedicated customers to the Atlanta-based parcel carrier’s service unit.

"Dedicated contract carriage is a critical component of our comprehensive supply chain management service offerings," said Dan DiMaggio, chief executive officer of UPS Logistics Group. "This acquisition significantly expands our U.S. network as well as our customer base."

UPS Truck Leasing provides full-service lease and rental services to 4,000 customers and provides maintenance services on more than 9,000 vehicles from 54 facilities in the United States.

Annual revenue for Rollins will increase by about $40 million as a result of the purchase of UPS’s truck leasing business and the sale of Rollins’ dedicated trucking business, according to the company.