FedEx to buy product returns specialist GENCO
FedEx has acquired GENCO, one of America’s largest third-party logistics companies as part of its efforts to expand in the retail and e-commerce sectors. The Memphis-based express delivery giant said the acquisition of Pittsburgh-based GENCO would add new supply chain management services to its range.
It said GENCO is a “pioneer and market leader” in reverse logistics services including product testing and repair, re-marketing, resale and recycling. It has blue-chip clients including retail giant Sears and mobile phone giant AT&T.
The acquisition of the family-owned company is subject to regulatory approval under antitrust laws in the US and Canada.
With its origins stretching back to 1898, GENCO now generates a $1.6bn annual turnover, employing more than 11,000 people at more than 130 locations, FedEx said.
Commenting on the acquisition, FedEx Corp chairman and chief executive Frederick W Smith said: “The acquisition of GENCO will transform our global portfolio through the addition of new best in class supply chain management services.
“As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services.”
GENCO started out as a trucking firm that expanded into the warehousing and distribution business in the 1940s. It developed a centralised returns process in the 1980s, before expanding by acquisition in the 1990s.
The company merged with ATC Technologies in 2010 to expand its presence in the technology and consumer electronics market.
GENCO states that it manages $1.5bn in freight each year through its 140 warehouse locations, which comprise 38m square feet (3.5m square metres) of space.
In 2014, GENCO’s resale business, GENCO Marketplace, liquidated more than $2.5bn in products returned to retailers via a network of online sellers, discount retailers, auction firms and other entrepreneurs.
Herb Shear, the GENCO executive chairman whose grandfather started the company, said: “With similar corporate cultures, shared values and unwavering focus on developing world-class logistics solutions, FedEx and GENCO are a great fit.
“I am especially pleased that Todd R. Peters will continue as GENCO CEO and to know that our teammates everywhere will make significant and lasting contributions to our customers as members of the FedEx family.”