FedEx Express has jumped ahead of rivals in Brazil by completing the acquisition of long-timelocal partner Rapidão Cometa to gain a strong domestic business in the fast-growing express
market.The acquisition, for an undisclosed sum, means that after a 18-24 month integration FedExExpress Brazil will expand dramatically in size, have a much larger network and will be able tooffer customers one-stop shopping for both domestic and international transportation and logisticsservices.
FedEx Express said the acquisition is the latest step in its strategy for profitable growth inthe Latin American and Caribbean (LAC) region, where it now has some 17,000 staff in more than 50countries and territories. The company already acquired Mexican domestic express firm Multipack andlaunched domestic services in Colombia last year.
Rapidão Cometa is one of Brazil’s largest transportation and logistics companies with revenuesof more than $500 million in 2011, some 12 million shipments and 17,000 clients. Based in Recife,north-east Brazil, the company has a domestic ground network of 45 branches and approximately 145distribution points, 770 vehicles and trailers, and 9,000 team members across the country. Itdelivers day-definite packages and freight to 5,300 locations across the country using air and roadservices.
In comparison, FedEx, with five weekly MD-11 flights between Memphis and Sao Paulo, has arelatively small operation in Brazil with some 500 employees and 150 vehicles, but uses RapidãoCometa for collections and deliveries of international shipments under their 11-yearpartnership.
In future, the enlarged FedEx Express Brazil will compete with major domestic operators such asTNT Express, which has 140 branches and net sales of €320 million in Brazil last year, postaloperator Correios with its Sedex express business, privately-owned Braspress and a number ofsmaller express and parcel companies such as Total Express and Direct Express. DHL Express and UPSfocus largely on international express to and from Brazil, although UPS launched limited domesticexpress services in 2009.
“Brazil is the sixth-largest economy in the world and its rapidly increasing middle classpresents tremendous opportunity for FedEx Express,” said Michael L. Ducker, chief operating officerand president, International, of Memphis-based FedEx Express. “Our customers are our top priorityand this acquisition is a testament to our commitment to expand our global footprint in the marketsthat most need access to the global marketplace.”
“We have enjoyed an 11-year relationship with Rapidão Cometa, and this acquisition furtherdemonstrates our commitment to Brazilian customers and businesses,” said Juan Cento, regionalpresident of FedEx Express LAC. “The integration of our companies will create a winning combinationof global reach and national expertise, backed by a commitment to service excellence.”
One of the first steps in integrating the two companies is the naming of Américo Pereira Filho,current president of Rapidão Cometa, as a vice president of FedEx Express LAC and president ofFedEx Express Brazil. To promote a seamless transition, the two companies will go through acomplete integration process that is expected to last between 18 and 24 months.
“As FedEx and Rapidão Cometa share the similar core values of keeping our customers at the heartof all we do, I’m honoured to be able to serve as president of the new, expanded FedEx Brazil,”said Américo Pereira Filho. “I look forward to continuing our commitment to provide not onlyoutstanding customer service with a wider range of domestic and international transportation andlogistics solutions throughout Brazil, but also an excellent workplace environment for our teammembers.”
