UPS Agrees to Buy Menlo Worldwide

United Parcel Service Inc. agreed to buy Menlo Worldwide Forwarding, a unit of Palo Alto-based CNF Inc., for $150 million in cash and about $110 million in long-term debt, the companies said.

Atlanta-based UPS said the purchase of Menlo Worldwide Forwarding, which offers heavy air freight forwarding, ocean services and international trade management, underpinned efforts to broaden its growing logistics business.

Menlo Worldwide Forwarding employs more than 8,000 people around the world and had revenue of $1.9 billion in 2003.

Shares of UPS closed down 30 cents at $76.97 while shares of CNF closed up $2.78 at $44.63 on the NYSE.