FedEx Express today announced an agreement to acquire French B2B express carrier TATEX to enter theFrench domestic market and to step up its strategy of targeted mid-sized acquisitions in Europe.
The acquisition of TATEX, for an undisclosed sum, follows the recent deal to buy Polishcourier Opek and similar acquisitions in the UK and Hungary in recent years. The French transactionis subject to necessary regulatory approvals and customary conditions.
TATEX (formerly called TAT Express) has revenues of some €150 million and delivers about 19million parcels a year. Founded in 1976, the company has more than 1,000 employees and a networkcomprising a central hub near Paris, and 35 shipping centres including six regional hubs. The firmspecialises in B2B time-definite express deliveries of small parcels as well as pallets up to 800kgwithin France and to international destinations. It also has a small B2C home delivery business.
“FedEx has always recognised the importance of our Europe, Middle East, Indian Subcontinentand Africa (EMEA) region and its many unique marketplaces to global trade, and this acquisitionshows we are continuing to systematically and strategically invest in growing our network and valueproposition in these important areas of the world,” said Frederick W. Smith, chairman, presidentand chief executive officer of FedEx Corp.
“The TATEX business complements FedEx existing operations in the French market, and willenable the company to provide additional local services in one of Europe’s largest geographies, toits customers around the world,” he added.
“The needs of FedEx customers are at the core of our growth plans; we have proudly integratednew services in keeping with the dynamism of the international marketplace that offer our customersthe highest calibre of service. We are delighted our growth plans bring new employees into theFedEx family and integrate them into our ‘people first’ work environment,” said Gerald P. Leary,president, FedEx Express EMEA. “France has always been a key market for FedEx and with this latestacquisition, our position in France will be further strengthened.”
“Once the transaction closes, the combination of FedEx international reach, and thewell-established and comprehensive domestic network of TATEX, will be a powerful and valuablecombination that will deliver immediate value for our customers, employees and the communities inwhich we operate,” added Xavier Papot, President, TATEX.
FedEx entered the French market in 1985. Since then the company has been continuouslyexpanding its range of international shipping services in the market and today employs over 3,000team members in the country. In 2009, the company expanded its EMEA hub at Paris’ Roissy Charles deGaulle airport, making it the biggest FedEx Express hub outside the US.
FedEx Express has been steadily broadening its European network and most recently announcedplans to acquire Polish shipping company Opek. These acquisition plans follow the company’spurchase of ANC Holdings Limited, a UK domestic express transportation company in 2006 and of itsHungarian service provider, Flying Cargo Hungary Kft, in 2007.
The company is also expanding its air and ground network in Europe. Between October 2011 andthe end of May 2012, FedEx will have opened 38 new stations across the continent, including 19 inFrance, creating new jobs in the process. The company has also invested heavily in its airfleet, providing an additional five B757s on intra-European routes, and another B777 for long-haulroutes, bringing the total number of B777s operating FedEx routes in and out of Europe tofour.
In addition, FedEx Trade Networks has greatly expanded its presence in Europe, includingthree new locations in France, adding 22 locations in recent years to complement the portfolio ofexpress services.
