FedEx Corp. (NYSE:FDX) announced today that it has signed an agreement to acquire TATEX, a leading French business-to-business express transportation company. The acquisition represents the latest FedEx investment in delivering sustainable growth in Europe. This transaction is subject to necessary regulatory approvals and customary conditions.
Founded in 1976, TATEX, a privately-held company, has over 1,000 employees and a nationwide network with a central hub at Lieusaint, just south of Paris, and 35 shipping centers including six regional hubs. The acquisition will give FedEx Express access to a nationwide domestic ground network which carries 19 million shipments and produces approximately EUR 150 million in revenue annually. This latest development demonstrates the company’s continued focus on European expansion through smart, strategic investments, and organic growth.
“FedEx has always recognized 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,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. “The TATEX business complements FedEx 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.”
FedEx Express has been steadily broadening its European network and most recently announced plans to acquire Opek Sp.z o.o., a Polish shipping company. These acquisition plans follow the company’s purchase of ANC Holdings Limited, a UK domestic express transportation company in 2006 and of its Hungarian service provider, Flying Cargo Hungary Kft, in 2007. Between October 2011 and the end of May 2012, FedEx will have opened 38 new stations across Europe, including 19 in France, creating new jobs in the process. The company has also invested heavily in its air-fleet – providing an additional five B757s on intra-European routes, and another B777 for long-haul routes – bringing the total number of B777s operating FedEx routes in and out of Europe to four. In addition, FedEx Trade Networks has greatly expanded its presence in Europe, including three new locations in France, adding 22 locations in recent years to complement the portfolio of express services.
“The needs of FedEx customers are at the core of our growth plans; we have proudly integrated new services in keeping with the dynamism of the international marketplace that offer our customers the highest caliber of service. We are delighted our growth plans bring new employees into the FedEx 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 latest acquisition, our position in France will be further strengthened.”
“Once the transaction closes, the combination of FedEx international reach, and the well-established and comprehensive domestic network of TATEX, will be a powerful and valuable combination that will deliver immediate value for our customers, employees and the communities in which we operate.” said Xavier Papot, President, TATEX.
FedEx entered the French market in 1985. Since then the company has been continuously expanding its range of international shipping services in the market and today employs over 3,000 team members in the country. In 2009, the company expanded its EMEA hub at Paris’ Roissy Charles de Gaulle airport, making it the biggest FedEx Express hub outside the US.