FedEx completes acquisition of MultiPack, expands presence in Mexico

FedEx officials said that this deal will allow FedEx Express to provide a wider range of domestic and international transportation and logistics offerings in Mexico

By ·

FedEx said it its FedEx Express subsidiary has officially completed its acquisition of Mexico-based domestic express package delivery company MultiPack.

The deal was initially announced last December. Financial terms were no disclosed.

FedEx officials said that this deal will allow FedEx Express to provide a wider range of domestic and international transportation and logistics offerings in Mexico, as well as reinforcing its commitment to the Mexican market by facilitating access of local businesses to advanced technology, expanded services to meet their transportation and logistics needs and an expansive retail presence throughout Mexican Republic.

Established in 1939, MultiPack provides package delivery, transportation and warehousing services throughout all 31 Mexican states and the Distrito Federal. The company has 48 distribution centers, 13 warehouses, and more than 500 retail locations in Mexico.

“The decision to acquire MultiPack is in line with our desire to grow by expanding the FedEx portfolio of products and services to meet the needs of our customers, driving additional business through the existing infrastructure while continuing to improve profitability,” a FedEx spokesperson said in a December interview. “The domestic shipping market represents great potential for FedEx and by acquiring MultiPack, FedEx will be able to respond to market demands for a broad range of domestic transportation and logistics solutions, as well as international services, from a single provider.”

Other factors driving the decision behind this acquisition include the fact that the Mexico domestic package marketplace is estimated to be $770 million USD and is expected to grow 8-to-10 percent annually over the next five years. And Mexico is one of the world’s most dynamic growth markets and a critical part of the FedEx global network, connecting more than 220 countries and territories.

Effective today, FedEx said it has begun incorporating MultiPack’s existing operations and infrastructure into its network, with full integration to be achieved in phases.

The FedEx spokesperson added that this acquisition will allow FedEx to greatly enhance its service offering in response to market demands, and to offer bundled solutions for both domestic and international transportation and logistics services from a single provider

“In addition, with this acquisition FedEx will be able to provide customers with a more robust service offering to meet all of their needs,” said the spokesperson. “Not to mention this will increase FedEx market penetration and positions the company for accelerated growth in Mexico, the Latin America region and globally.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Making the Case for FedEx Critical Inventory Logistics
FedEx Critical Inventory Logistics is designed to help companies streamline and drive costs out of their aftermarket service supply chains to meet customer service level agreements and grow their bottom-line revenues.
Download Today!
From the December 2017 Logistics Management Magazine Issue
Trade and transport analysts see rates rising across all modes in accordance with continued expansion of domestic and international markets. Economists, meanwhile, say shippers can expect revenue growth in transport verticals to remain in the 3%-plus range.
2018 Customs & Regulations Update:10 observations on the “digital trade transformation”
Moore on Pricing: Freight settlement and your TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2018 Rate Forecast
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...

2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...