FedEx set to acquire Mexico-based MultiPack
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.”
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