FedEx announced today it is stepping up its European growth strategy with the acquisition of Polishcourier company Opek Sp.z o.o. (Opek) for an undisclosed sum.
FedEx expects that the transaction will most likely close in summer 2012, after necessaryregulatory approvals and subject to customary conditions. The acquisition price was not disclosedbut Polish media reported earlier this year that FedEx would pay about 100 million zlotys (€23million) for the company.
The acquisition will give FedEx Express access to a nationwide domestic ground network withan estimated $70 million in annual revenue and 12.5 million shipments annually.
Opek, a family-owned company, was founded in 1994 and has built a well-established networkwhich covers the entire country. It operates an automated hub in Lomianki, near Warsaw, andadditional hubs in Lodz and Katowice. In total, the company operates 44 stations throughout Poland.More than 1,200 employees work for Opek and the company engages more than 1,300 contracted drivers.
Opek has a domestic market share of about 14 per cent, according to Polish media reports,while the international express and parcels companies, primarily DHL, TNT, UPS, DPD and GLS, haveabout 80 per cent of the domestic market, according to CEP-Research market information. The othermajor domestic operator is privately-owned Siodemka.
FedEx currently focuses on international express shipments to and from Poland. It operatesflights from Warsaw and Katowice, where it has branch stations at the two airports, to Paris, andcurrently employs approximately 120 team members in the country.
“The acquisition delivers an excellent extension to the current service portfolios of bothcompanies and puts us in an even better position to jointly meet the growing needs of ourcustomers,” said Gerald P. Leary, president, FedEx Express Europe, Middle East, Indian Subcontinentand Africa. “Our two companies represent a strategic fit with a common commitment to enhance theservice we can offer Polish businesses, invest in our people and positively impact our communitiesas good corporate citizens.”
“This agreement with FedEx is a result of many years of dedication by Opek workers tooutstanding customer service,” said Marek Opinski, general director, Opek. “We know our employeesand couriers will be proud to be part of the team at FedEx, which is one of the world’s mostadmired companies and is also known as a great place to work.”
The acquisition of Opek will supplement the FedEx Express service portfolio in Poland andcontinue its European expansion through smart, strategic investments, FedEx stressed in astatement.
“In recent years, we have made significant investments throughout Europe, greatly expandingour network coverage and improving service to customers,” said Frederick W. Smith, chairman,president and chief executive officer of FedEx Corp. “Our presence in Europe is backed by strongleadership and management and dedicated team members. We have an excellent strategy that hassteadily advanced our position in the region, and we are well positioned for profitable growth aswe increase the number of direct-served locations in Europe.”
FedEx Express broadened its European network in 2006 by purchasing ANC Holdings Limited, a UKdomestic express transportation company. In 2007, FedEx Express began its wholly-owned operation inHungary after acquiring its service provider, Flying Cargo Hungary Kft. In 2009 it expanded itsEuropean hub at Roissy-Charles de Gaulle Airport, Paris, France, making it the largest FedEx huboutside the United States. In 2010, FedEx Express relocated its Central and Eastern European hubfrom Frankfurt to a new state-of-the-art hub in Cologne, Germany.
So far in fiscal year 2012, FedEx Express has opened 26 new stations across France, Germany,Italy, the Netherlands, Northern-Ireland and Sweden. In addition, FedEx Trade Networks has greatlyexpanded its presence in Europe, adding 22 locations in recent years to complement the portfolio ofexpress services.
