FedEx makes $2bn Kinko’s acquisition
FedEx has recently announced that it has made a multi-billion dollar acquisition expanding the range of its express services in the US and globally. It has purchased Kinko’s a retail chain providing copy, print and business services with 1,200 outlets in 110 international locations, although the vast majority are in the US. The company paid $2.4bn (€1.9bn) to Clayton, Dubilier & Rice (CD&R), a global private equity investment firm, which owns approximately 75% of Kinko’s shares. The retailer has revenues of around $2bn (€1.6bn).
FedEx has an existing relationship with Kinko’s as its exclusive shipping partner at 134 stores where parcels services are offered. According to FedEx this facility will now be extended to all Kinko’s stores worldwide providing the carrier with a major opportunity to increase its parcel volumes from this source.
The acquisition can be seen as a response to UPS’ decision in 2001 to purchase Mail Boxes Etc (MBE), a similar type of business. However whereas UPS only acquired the rights to the franchise, it would seem that FedEx has also bought the stores themselves. This gives FedEx more flexibility to develop and integrate Kinko’s within its overall business strategy.
