Quarterly report [Sections 13 or 15(d)]

ACQUISITIONS AND DISPOSITIONS

v3.25.2
ACQUISITIONS AND DISPOSITIONS
 6 Months Ended
Jun. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS AND DISPOSITIONS ACQUISITIONS AND DISPOSITIONS
In January 2025, we acquired Frigo-Trans, an industry-leading, complex healthcare logistics provider based in Germany. The acquisition is expected to increase our complex cold-chain logistics capabilities internationally.
During 2025, we also acquired franchise development areas for The UPS Store, which are recorded as intangible assets within Supply Chain Solutions.
The aggregate purchase price of all acquisitions during the six months ended June 30, 2025 was approximately $479 million, net of cash acquired. Acquisitions were funded using cash from operations.
The estimated fair values of assets acquired and liabilities assumed are subject to change based on completion of our purchase accounting. Certain items, including property, plant and equipment, and our estimates of tax positions, are preliminary as of June 30, 2025. The preliminary purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions):
2025
Cash and cash equivalents $ 5 
Accounts receivable 20 
Other current assets 1 
Property, plant and equipment
 84 
Operating lease right-of-use assets
 18 
Goodwill 339 
Intangible assets(1)
186 
Other non-current assets
 1 
Current maturities of operating leases
 (4)
Accounts payable and other current liabilities
 (18)
Non-current operating lease
(14)
Deferred income tax liabilities
 (46)
Other non-current liabilities
 (88)
Total purchase price $ 484 
(1)    Includes $40 million for acquisitions of development areas for The UPS Store.
Goodwill recognized upon acquisition of approximately $339 million is attributable to expected synergies from future growth, and has been assigned to Supply Chain Solutions. Goodwill acquired is not expected to be deductible for income tax purposes.
Intangible assets acquired of approximately $186 million are primarily comprised of $142 million of customer relationships (amortized over a weighted average of 15 years). Other intangible assets acquired include franchise rights, licenses and trade names. The carrying value of accounts receivable approximates fair value.
In the second quarter of 2025, we completed the divestiture of a business within UPS Digital. In connection with this divestiture, we recorded a pre-tax gain of $20 million ($14 million after tax) during the three months ended June 30, 2025. The gain was recognized within Other Expenses in the statement of consolidated income.