Tag: FedEx Corp

FDX announced its intention to purchase Kinko’s for $2.4 billion in cash
from Clayton, Dubilier & Rice. The deal is expected to close in C1Q:04.
Comments from Bear Stearns
Comment from Barry Hansen: Paul, something else for Deutsche Post to ponder. Airborne is in with Office Max, but I don’t see that as a great fit. People do not go there to do office type work, but to buy office type supplies. Barry

FedEx Corporation and Clayton, Dubilier & Rice, Inc., today jointly announced an agreement for FedEx to acquire Kinko’s for US$2.4 billion, payable in cash. The transaction is not expected to have a material impact on fiscal 2004 results but is expected to be accretive to earnings in fiscal 2005, which begins June 1, 2004. “The FedEx and Kinko’s combination will substantially increase our retail presence worldwide and will enable both companies to take advantage of growth opportunities in the fast-moving digital economy,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. “Our two companies share a similar background, culture and customer focus, and that common ground is extremely important as we prepare for future growth and success.” Privately-held Kinko’s operates approximately 1,200 stores worldwide and estimates annual revenue of about $2 billion for its year ending December 31. Funds managed by Clayton, Dubilier & Rice, a global private equity investment firm, own approximately 75 percent of Kinko’s outstanding shares.