FedEx acquisition will provide a “robust network” in India
FedEx Express has said it will acquire the logistics, distribution and express businesses of AFL Pvt. Ltd. and its affiliate, Unifreight India Pvt. Ltd. This acquisition will give FedEx a “more robust domestic ground network and added capabilities in India”, said the company.
FedEx expects that this transaction, which is subject to customary closing conditions, will close in its third fiscal quarter, which ends February 2011.
Founded in 1945, AFL Pvt. Ltd. has been a recognised leader in the transportation and logistics industry in India. A privately held company, the AFL business offerings include a range of distribution and logistics services through its network across India.
“The acquisition supports our long-term strategy to grow our international business and better serve our customers seeking to expand or enter the Indian market,” said Michael L. Ducker, COO, FedEx Express.
AFL Logistics and Distribution consists of a wide range of products and services, including supply chain management, warehousing, and a ground distribution network that provides day-definite ground transportation for small packages and heavyweight shipments through more than 200 daily scheduled routes.
AFL WiZ Express offers express services through more than 160 Express Service Centers, servicing more than five thousand zip codes across 144 cities in India.
“This will provide customers with more service options such as domestic ground and value-added services, including warehousing, logistics solutions and third party logistics, while allowing them to take advantage of an increased coverage area,” Ducker added..
Cyrus Guzder, chairman of AFL, said: “This transaction provides AFL with an opportunity to offer its customers an enhanced level of service, new service offerings and the adoption of global best practices in its core businesses of air express delivery and ground distribution.
“While our extensive network and logistics infrastructure will enable FedEx to deepen its penetration of the Indian market, I believe AFL’s customers will be excited by the prospects of AFL’s service offering being strengthened under the leadership of a global leader in express delivery and transportation.
“AFL’s employees will also greatly benefit from joining the global family of one of the world’s most admired employers.”
After the acquisition closes, Cyrus Guzder will assume the role of executive advisor to FedEx.
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