FedEx is expanding its e-commerce and supply chain solutions portfolio with an agreement to buyGenco, a $1.6 billion turnover company specialising in returns logistics.
With a comprehensive portfolio of supply chain services, Genco’s expertise will expand existingFedEx service offerings in the evolving retail and e-commerce markets, the Memphis-based companyannounced. The acquisition price for the privately-owned firm was not disclosed.
The deal follows FedEx’s launch of a Global Returns solution in September this year, last year’spartnership between UPS and returns specialist Jabil, who teamed up to offer reverse logisticssolutions for high tech customers, and new returns solutions from DHL and TNT in recent years.
FedEx described Genco as “the recognised leader in product lifecycle and reverse logisticssolutions designed to maximise value and reduce costs”. Its product range covers the full productlifecycle, including inbound logistics; warehousing & distribution; fulfillment; contractpackaging; managed transportation; systems integration; returns processing & disposition; test,repair, refurbishment; product liquidation; and recycling.
With more than 11,000 staff at over 130 warehouse locations covering 38 million sq ft (3.5m sqm)throughout North America, Genco processes more than 600 million returned items annually andgenerates $1.6 billion in annual revenue. Its diverse range of customers includes many Fortune 500companies in the technology, consumer and industrial, retail and healthcare markets and the federalgovernment.
“The acquisition of Genco will transform our global portfolio through the addition of new bestin class supply chain management services,” said FedEx Chairman and CEO Fred Smith. “As e-commercecontinues to grow, customers of both companies will reap the benefits from the broadenedcapabilities and powerful new services.”
Herb Shear, Executive Chairman, Genco, added: “With similar corporate cultures, shared valuesand unwavering focus on developing world-class logistics solutions, FedEx and Genco are a greatfit. I am especially pleased that Todd R. Peters will continue as Genco CEO and to know that ourteammates everywhere will make significant and lasting contributions to our customers as members ofthe FedEx family.”
Based in Pittsburgh, Pennsylvania, GENCO was founded in 1898 by Hyman Shear as a truckingcompany, expanded into logistics services from the 1940s onwards, and moved into reverse logisticsin the 1980s. In 2010 GENCO merged with ATC Technology Corp. (ATC), which focused on logisticssupport for wireless and other high-tech companies, making the merged company into the supply chainmanagement leader in the consumer electronics sector.
The transaction is subject to customary closing conditions, including compliance with U.S. andCanadian antitrust law requirements. Genco will continue to operate as an independent company untilthe transaction is closed in the new calendar year, FedEx said.
