FedEx completes acquisition of MultiPack, expands presence in Mexico

By Jeff Berman, Group News Editor
July 26, 2011 - LM Editorial

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 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

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

With a 0.8 cent decrease, this week’s average price per gallon is $3.835 and stands as the lowest price since hitting $3.844 the week of November 25, 2013.

LTL carriers are rapidly investing in expensive, on-dock, three-dimensional size measurement capturing machinery, and they are hoping one day of being able to more accurately charge shippers rates based on the actual dimensions of their shipments, rather than the traditional weight-and-distance-based formula that has been in effect since the 1930s or even earlier.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) recently reported that its Freight Transportation Services Index (TSI) dipped 0.9 percent from May to June.

About the Author

Jeff Berman, 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.

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