Fedex achète Parcel Direct
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Communiqué de Fedex :
FedEx To Acquire Leading Parcel Consolidator Parcel Direct; Residential Service Targets Fast-Growing E-tail and Catalog Industries
Business Editors
MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 9, 2004--FedEx Corp. (NYSE:FDX) today announced an agreement to acquire Parcel Direct, a division of Quad/Graphics, for $120 million in cash. Parcel Direct is a leading parcel consolidator and will add a new dimension to the FedEx portfolio of services. The transaction is expected to close during the second fiscal quarter and is subject to customary conditions, including Hart-Scott-Rodino clearance. Based on Parcel Direct's current size, this acquisition is not expected to have a material effect on the fiscal 2005 financial results of FedEx.
Parcel Direct will be a subsidiary of FedEx Ground and will offer a proven solution to customers in the fast-growing e-tail and catalog industries. These customers are increasingly seeking a cost-effective means of shipping low-weight, less time-sensitive goods to residential customers.
"This acquisition is consistent with our long-standing strategy to acquire leading businesses that meet emerging market needs," said Daniel J. Sullivan, president and chief executive officer of FedEx Ground. "We are confident that we can aggressively grow this new business by combining Parcel Direct's cost-effective and scalable network with FedEx sales, marketing and financial resources."
Parcel Direct, based in New Berlin, Wis., has about 450 employees and generated approximately $250 million of gross revenue in 2003 ($130 million in net revenue). Parcel Direct has developed a successful model for parcel consolidation tailored to meet the needs of targeted high-volume shippers. The model is based on a low-cost, highly efficient network specifically designed to take advantage of the United States Postal Service's Parcel Select service.
Each day thousands of packages are transported from customers' facilities to one of twelve Parcel Direct sorting locations in the United States. Packages are sorted and consolidated at these locations and then transported to local Post Offices for ultimate delivery to residential customers by more than 300,000 United States Postal Service mail carriers. This service is an optimum choice for customers shipping large volumes of low-weight, less time-sensitive packages and will further enhance FedEx Ground's service offerings.
With this acquisition, FedEx will add to its range of distinct residential services designed to meet specific customer needs. Among the other successful residential services that FedEx currently offers are:
--
FedEx Express domestic residential services, time-definite services that provide shippers with a money-back guarantee, a closed network with custodial control, Saturday delivery and end-to-end online tracking capabilities through fedex.com.
--
FedEx Home Delivery, a day-definite service that provides shippers with a money-back guarantee, a closed network with custodial control, evening delivery, appointment delivery, Saturday delivery and end-to-end online tracking capabilities through fedex.com.
"Our 3,000 plus person sales-force has a strong track record of effectively selling a bundle of services to customers," said T. Michael Glenn, executive vice president of FedEx Corp. "The addition of Parcel Direct's complementary residential service enhances our ability to meet our customers' specific needs and should grow Parcel Direct's business."
The services provided by Parcel Direct will complement the strategic alliance that FedEx already enjoys with the United States Postal Service.
-- FedEx Express currently has a seven-year, $7 billion contract
to provide transportation services to the United States Postal
Service.
-- The United States Postal Service recently agreed for FedEx
Express to provide transportation of Global Express
Guaranteed, a co-branded service that offers customers
delivery to 194 international countries.
-- FedEx and the United States Postal Service also have an
agreement where FedEx has placed nearly 5,000 FedEx Express
Drop Boxes at local Post Offices around the country, giving
FedEx customers greater access to FedEx Express services.
About FedEx
FedEx Corp. provides customers and businesses worldwide with the broadest portfolio of transportation, e-commerce and business services. With annual revenues of $25 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 240,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com.
About the Transaction
Certain statements in this press release regarding the proposed transaction between FedEx and Parcel Direct may be considered "forward-looking statements," such as statements relating to expectations for Parcel Direct's business, whether and when the transaction will close and its impact on FedEx financial results. Such forward-looking statements are subject to risks and uncertainties, and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the receipt of regulatory approvals without unexpected delays or conditions, FedEx's ability to successfully operate Parcel Direct without disruption to its other business activities, FedEx's ability to achieve the anticipated results from the acquisition of Parcel Direct, the effects of competition (in particular the response to the transaction in the marketplace), the duration and magnitude of the United States domestic economic recovery and other factors which can be found in the FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.
CONTACT: FedEx Corporation, Memphis
Media Contact:
Jesse W. Bunn, 901-818-7463
or
Investor Contact:
J. H. Clippard, Jr., 901-818-7468
__________________________________________
__________________________
Communiqué de Fedex :
FedEx To Acquire Leading Parcel Consolidator Parcel Direct; Residential Service Targets Fast-Growing E-tail and Catalog Industries
Business Editors
MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 9, 2004--FedEx Corp. (NYSE:FDX) today announced an agreement to acquire Parcel Direct, a division of Quad/Graphics, for $120 million in cash. Parcel Direct is a leading parcel consolidator and will add a new dimension to the FedEx portfolio of services. The transaction is expected to close during the second fiscal quarter and is subject to customary conditions, including Hart-Scott-Rodino clearance. Based on Parcel Direct's current size, this acquisition is not expected to have a material effect on the fiscal 2005 financial results of FedEx.
Parcel Direct will be a subsidiary of FedEx Ground and will offer a proven solution to customers in the fast-growing e-tail and catalog industries. These customers are increasingly seeking a cost-effective means of shipping low-weight, less time-sensitive goods to residential customers.
"This acquisition is consistent with our long-standing strategy to acquire leading businesses that meet emerging market needs," said Daniel J. Sullivan, president and chief executive officer of FedEx Ground. "We are confident that we can aggressively grow this new business by combining Parcel Direct's cost-effective and scalable network with FedEx sales, marketing and financial resources."
Parcel Direct, based in New Berlin, Wis., has about 450 employees and generated approximately $250 million of gross revenue in 2003 ($130 million in net revenue). Parcel Direct has developed a successful model for parcel consolidation tailored to meet the needs of targeted high-volume shippers. The model is based on a low-cost, highly efficient network specifically designed to take advantage of the United States Postal Service's Parcel Select service.
Each day thousands of packages are transported from customers' facilities to one of twelve Parcel Direct sorting locations in the United States. Packages are sorted and consolidated at these locations and then transported to local Post Offices for ultimate delivery to residential customers by more than 300,000 United States Postal Service mail carriers. This service is an optimum choice for customers shipping large volumes of low-weight, less time-sensitive packages and will further enhance FedEx Ground's service offerings.
With this acquisition, FedEx will add to its range of distinct residential services designed to meet specific customer needs. Among the other successful residential services that FedEx currently offers are:
--
FedEx Express domestic residential services, time-definite services that provide shippers with a money-back guarantee, a closed network with custodial control, Saturday delivery and end-to-end online tracking capabilities through fedex.com.
--
FedEx Home Delivery, a day-definite service that provides shippers with a money-back guarantee, a closed network with custodial control, evening delivery, appointment delivery, Saturday delivery and end-to-end online tracking capabilities through fedex.com.
"Our 3,000 plus person sales-force has a strong track record of effectively selling a bundle of services to customers," said T. Michael Glenn, executive vice president of FedEx Corp. "The addition of Parcel Direct's complementary residential service enhances our ability to meet our customers' specific needs and should grow Parcel Direct's business."
The services provided by Parcel Direct will complement the strategic alliance that FedEx already enjoys with the United States Postal Service.
-- FedEx Express currently has a seven-year, $7 billion contract
to provide transportation services to the United States Postal
Service.
-- The United States Postal Service recently agreed for FedEx
Express to provide transportation of Global Express
Guaranteed, a co-branded service that offers customers
delivery to 194 international countries.
-- FedEx and the United States Postal Service also have an
agreement where FedEx has placed nearly 5,000 FedEx Express
Drop Boxes at local Post Offices around the country, giving
FedEx customers greater access to FedEx Express services.
About FedEx
FedEx Corp. provides customers and businesses worldwide with the broadest portfolio of transportation, e-commerce and business services. With annual revenues of $25 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 240,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com.
About the Transaction
Certain statements in this press release regarding the proposed transaction between FedEx and Parcel Direct may be considered "forward-looking statements," such as statements relating to expectations for Parcel Direct's business, whether and when the transaction will close and its impact on FedEx financial results. Such forward-looking statements are subject to risks and uncertainties, and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the receipt of regulatory approvals without unexpected delays or conditions, FedEx's ability to successfully operate Parcel Direct without disruption to its other business activities, FedEx's ability to achieve the anticipated results from the acquisition of Parcel Direct, the effects of competition (in particular the response to the transaction in the marketplace), the duration and magnitude of the United States domestic economic recovery and other factors which can be found in the FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.
CONTACT: FedEx Corporation, Memphis
Media Contact:
Jesse W. Bunn, 901-818-7463
or
Investor Contact:
J. H. Clippard, Jr., 901-818-7468
__________________________________________