_A Monitor Report
Memphis : FedEx wrapped up its second European acquisition in two months on May 10, signing an agreement to purchase French express shipping company Tatex. The business-to-business express carrier has 1,000 employees and a nationwide network in France, including a central hub in Lieusaint, just south of Paris.
Tatex carries more than 19 million parcels a year, specialising in the high-tech, spare parts, automotive and clothing sectors, and has about US$198 million in revenue. The company has 35 shipping centers including six regional hubs in France.
In April FedEx bought Polish courier company Opek, its first European acquisition following UPS's US$6.8 billion takeover of the Dutch TNT Express in mid-March.
FedEx is also growing organically in Europe, opening 26 stations across France, Germany, Italy, the Netherlands, Sweden and Northern Ireland so far in fiscal 2012.The acquisitions of Tatex and Opek are expected to boost FedEx's annual sales in Europe by about US$270 million.
According to a press release, the integrator's acquisition of Tatex also demonstrates its "continued focus on European expansion through smart, strategic investments and organic growth." In fact, the past seven months have seen the launch of 38 new FedEx offices across Europe, half of which are located in France.
Frederick W. Smith, CEO of FedEx Corp., said the Tatex acquisition will boost the company's operations in Europe even more. "FedEx has always recognised the importance of our Europe, Middle East, Indian Subcontinent and Africa - EMEA - region and its many unique marketplaces to global trade, and this acquisition shows we are continuing to systematically and strategically invest in growing our network and value proposition in these important areas of the world," he said in a statement.
"The Tatex business complements FedEx's existing operations in the French market, and will enable the company to provide additional local services in one of Europe's largest geographies, to its customers around the world," Smith continued.
FedEx Express EMEA President Gerald Leary echoed Smith's statements, commenting that customer demand drove the company's decision to expand in Europe. And, France, in particular, "has always been a key market for FedEx," Learly said_ a position that will be strengthened with the Tatex acquisition, he added.