UPS, Rollins agree to swap business units

ATLANTA (Nov. 15, 1999) — United Parcel Service Inc. and Rollins Truck Leasing Corp. have entered a joint marketing alliance and agreed to swap business units.

In separate transactions, UPS will sell its UPS Truck Leasing unit to Rollins and buy RollinsÕ logistics subsidiary. As part of the agreements, Rollins will become the preferred provider of lease and rental vehicles to Worldwide Dedicated Services Inc., a unit of UPS Logistics. In turn, UPS Logistics will provide logistics management and dedicated logistics services to Rollins and its customers.

UPS has been trying to shed its truck leasing unit, which provides full-service lease and rental services to 4000 customers from 54 facilities throughout the U.S., for some time. Rollins Logistics provides dedicated and logistics services to more than 100 customers throughout the United States.

The transactions are the first for Atlanta-based UPS since it raised $5.47 billion last week in an initial stock sale. They are expected to be complete by January 2000, the companies said.