Watch stocks you care about
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
In a bid to offer a complete suite of branded export, import, and domestic solutions that connects southern Africa to more than 220 countries and territories worldwide, FedEx (NYSE: FDX ) announced this morning it had completed the first stage of a strategic acquisition of the businesses operated by its current service provider Supaswift in southern Africa.
To operate under its FedEx Express business unit, the carrier will acquire the businesses servicing South Africa, Malawi, Mozambique, Swaziland, and Zambia. It's also in discussions to acquire the supplier's businesses in Botswana and Namibia. Once completed, FedEx Express will have direct access across the seven markets to 39 facilities and 1,000 Supaswift employees.
FedEx Chairman, President, and CEO Frederick W. Smith said: "The acquisition of Supaswift's businesses, once closed, will provide customers with greater access to some of the world's most rapidly growing economies. It is an important step in our international growth strategy and further strengthens our FedEx Express portfolio."
Supaswift started operations in South Africa in 1990, and subsequently merged with MyExpress, which had been offering FedEx Express international services in southern Africa since 1991.
The integration of the Supaswift businesses will start once the transaction has been closed, and is expected to be achieved gradually over a number of months. A time frame for the closing, and financial terms of the transaction, were not be disclosed.
FedEx Express comprises the lion's share of FedEx's business representing 62% of total revenues, though just 40% of its operating profits. Shares of the carrier were down more than 4% in early morning trading.