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
in the NewsState of Logistics 2016: Pursue mutual benefit May trade between U.S. and NAFTA partners down 3.1 percent UPS reports solid Q2 earnings paced by international and B2C growth AAR reports another week of declining volumes Despite mixed Q2 results, transportation & logistics deal making prospects look bright More News
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 AuthorJeff 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!
2016 State of Logistics: Third-party logistics 2016 State of Logistics: Ocean freight View More From this Issue