FedEx set to acquire India-based AFL Pvt. Ltd.
November 03, 2010
FedEx announced earlier today that its FedEx Express subsidiary will acquire the logistics, distribution, and express businesses of India-based AFL Pvt. Ltd. and its affiliate Unifreight India Pvt. Ltd.
Financial terms of the deal, which is expected to close by February 2011, were not disclosed.
FedEx officials said that this deal will provide FedEx Express with a more robust domestic ground network and added capabilities in India.
“This acquisition supports the FedEx commitment to the success of the Indian market, its workforce and its customers,” a FedEx spokesperson told LM in an interview. “Since 1984 when FedEx first entered the market as the first air express carrier FedEx recognized India’s significant economic potential. Continuing to invest in this market further evolves the market potential FedEx recognized more than 20 years ago.”
AFL Pvt. Ltd. was established in 1945. It provides shippers with a wide range of distribution and logistics services. Included in this acquisition are:
-AFL Logistics and distribution, which includes supply chain management, warehousing, and ground distribution network services that provide day-definite ground transportation for small packages and heavyweight shipments through more than 200 daily scheduled routes; and
-AFL WiZ Express, a provider of express services through more than 160 Express Service Centers that provide service for more than 5,000 zip codes across 144 cities in India.
FedEx Express COO Michael L. Ducker said in a statement that this acquisition supports the company’s long-term strategy to grow its international business and better serve customers seeking to expand or enter the Indian market.
And the FedEx spokesperson said that “the acquisition of the AFL businesses will allow FedEx to provide customers with more comprehensive service options, such as domestic ground and value-added services, including warehousing, logistics solutions and 3PL…and for AFL customers this acquisition will allow them to have direct access to the FedEx international air and ground network in more than 220 countries and territories worldwide, enhancing customers’ business flexibility and speed to market coupled with an outstanding FedEx customer experience.”
Subscribe to Logistics Management magazine
entire logistics operation. Start your FREE subscription today!