Subscribe to our free, weekly email newsletter!


FedEx set to acquire Mexico-based MultiPack

FedEx announced today it has signed an agreement to acquire Mexico-based domestic express package delivery company MultiPack.
By Jeff Berman, Group News Editor
December 16, 2010

FedEx announced today it has signed an agreement to acquire Mexico-based domestic express package delivery company MultiPack.

Financial terms were not disclosed. The acquisition is expected to close during the second quarter of 2011.

Company officials said that this acquisition will allow the FedEx Express business to “enhance its capabilities in the Mexican domestic market with a broader portfolio of transportation and logistics services under the trusted FedEx brand.”

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 an 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.

FedEx has been operating in Mexico for the past 20 years and is committed to supporting its businesses, communities and sustained economic growth. This acquisition will further grow its transportation and logistics services to this growing market. The company’s Mexico-based presence includes:
-hub facilities and bonded warehouses in Toluca, Guadalajara and Monterrey, as well as a domestic shipping hub in San Luis Potosi;
- a portfolio of international and domestic transportation solutions; and
-FedEx supports the Mexican community with social responsibility programs for which it has received national recognition:

“The 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,” said the spokesperson. “In addition, with this acquisition FedEx will be able to provide customers with a more robust service offering to meet all of their needs. 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 headshot
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. .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

UPS said this week that it has added significant space to some of its North America-based distribution facilities, which the company increases the total size of its supply chain solutions network size by roughly 1.2 million square-feet. The company’s total global supply chain solutions network is comprised of 596 facilities and about 32.8 million square-feet. UPS offers various services at these facilities, including: warehousing and fulfillment inventory, transportation and returns management; custom kitting and packaging; and store-ready displays.

A week ago, the average price per gallon of diesel gasoline saw its steepest decline in more than two years, when it fell 7 cents to $3.535. This week took that decline a step further, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price this week fell 11.6 cents to $3.419 per gallon.

With an eye on further expansion of its e-commerce business and related reverse logistics processes, transportation and logistics bellwether FedEx last night announced it has inked an agreement to acquire Pittsburgh-based GENCO, a third-party logistics (3PL) services provider specializing in product lifecycle and reverse logistics.

Article Topics

News · FedEx · Mexico · MultiPack · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA