FedEx Corp. announced today that it has signed an agreement to acquire MultiPack, a Mexican domestic express package delivery company. This transaction will allow its FedEx Express business unit to enhance its capabilities in the Mexican domestic market with a broader portfolio of transportation and logistics options under the trusted FedEx brand. The transaction is expected to close in the second calendar quarter of 2011, subject to regulatory approvals and customary conditions.
MultiPack offers a comprehensive range of package delivery, transportation, warehousing and logistics services with an established pick-up and delivery network across all 31 Mexican states and the Distrito Federal. Founded in 1939, MultiPack currently operates with a solid infrastructure including 48 distribution centers, 13 warehouses and more than 500 retail outlets across the country.
"The addition of MultiPack will significantly expand our domestic service portfolio in Mexico and underscores our commitment to expand the FedEx business in this dynamic growth market," said Michael L. Ducker, chief operating officer, FedEx Express. "This strategic investment will deliver additional value to our customers, employees and shareowners."
Mexican businesses increasingly demand a range of domestic and international transportation solutions with speed, reliability and national and global coverage. Through this acquisition, FedEx will be able to meet those needs with services backed by the renowned FedEx brand.
"As the Mexican market continues to evolve and expand, customers increasingly seek a single provider of solutions for their domestic and international transportation and logistics needs to more efficiently manage their supply chains," said Juan N. Cento, president, Latin America and Caribbean, FedEx Express. "This acquisition will give our customers access to broader business and transportation services, leveraging MultiPack's national expertise and infrastructure, and the FedEx global network connecting 220 countries and territories."
After closing, integration of the two companies will be achieved in phases. "The acquisition of MultiPack by FedEx, a world-class company known for its premium service and dedication to its people, will present new opportunities for both customers and employees," said Roby G. Brown, vice president of FedEx Express, Mexico, Central America and Andean. "Our two companies represent a strategic fit with a common commitment to enhance the service we can offer Mexican businesses, invest in our people, and positively impact our communities as good corporate citizens."
J.P. Morgan Securities Inc. is acting as financial advisor to FedEx.
Credit Suisse Securities (USA) LLC is acting as exclusive financial advisor to MultiPack.