FedEx Express set for big expansion in Brazil via acquisition
FedEx Corp said today it has signed a deal to acquire one of its express logistics partners in Brazil, Rapidão Cometa Logistica e Transportes. The US integrator has worked with the Recife-based company for 11 years, but said buying the company would mean FedEx Express customers having better customers to Rapidão Cometa’s nationwide logistics and transportation network.
And, FedEx Express will gain access to the 17,000 customers of one of the largest logistics companies in the country, which was founded around 70 years ago.
Rapidão Cometa’s network includes 45 operational branches and 145 distribution points across Brazil, with 9,000 employees and 770 vehicles and trailers that can reach 5,300 locations in all states of Brazil.
The company delivers around 12m small packages and heavy shipments a year, through a range of logistics and distribution services, including day-definite delivery, air and road freight.
As the two companies come together, FedEx said it would total 9,500 employees in Brazil.
Integration
“FedEx will now provide a more comprehensive portfolio in Brazil”
Memphis-based FedEx said it was expecting the acquisition to be completed in the third quarter of 2012. Integration of the two businesses in Brazil should then take around 18 to 24 months.
Juan N Cento, the president of FedEx Express in Latin America and the Caribbean, said his firm was responding to the “tremendous growth potential” in Brazil.
“The acquisition of Rapidão Cometa—one of the largest logistics solutions providers in Brazil—is in line with our long-term strategy to grow our Latin American business and better serve our customers seeking to enter or expand their businesses in the Brazilian market,” said Cento.
“FedEx will now be able to provide a more comprehensive portfolio of services in Brazil, including international air express, domestic ground and value-added services such as supply chain and logistics solutions.”
FedEx said in its 2011 annual report that Brazil – along with India and China – was at the centre of its long-term strategy for global growth, because of the intensifying global trade.
Elsewhere in Latin America, FedEx strengthened its presence in Mexico with the acquisition of the domestic carrier MultiPack, with the company now boasting a workforce of around 5,000 in Mexico.
