Tameka Gordon, Business Reporter
Jamaica-based Norbrook Caribbean Investment Company (NCIC) has acquired nine FedEx routes in South Florida, United States, in its bid to further diversify revenue streams and bolster its expansion through acquisition.
NCIC, the parent company of Mailpac Services, Airpak Express and UPS locally, acquired three contractual companies of FedEx to secure the routes, which will see them delivering an estimated 1.5 million packages yearly.
The acquisition was made through NCIC's United States-based subsidiary, Norbrook Capital Logistics (NCL).
The acquired routes were held by the respective contractor companies for more than 10 years each, NCIC boss Khary Robinson told the Financial Gleaner.
NCL inherited 21 delivery trucks for use in their operations from the companies acquired, but Robinson declined to identify those firms.
"A FedEx route is a dedicated geographic area to which a delivery company has exclusive rights to represent FedEx, inclusive of all package pickups and deliveries," Robinson said. "By acquiring three contractor companies in the Miami area, NPC is now the largest delivery partner to FedEx in South Florida," he added.
NCIC will "exclusively manage packages for FedEx in prime areas such as Coral Gables, Coconut Grove, Pine Crest, Kendall, Aventura, Homestead and South Beach," according to a release from the company this week.
Former manager of Airpak Peter-John Green will relocate to the US subsidiary to take over operations there.
Robinson said the move was the first in what they hoped to be a number of route acquisitions in Florida to significantly expand the company's stake in the US market. NCIC is currently negotiating takeover of another two companies in Florida with expectations for the deals to close by month end.
NCIC currently operates in Ghana, the Caribbean and has "interests in other companies that provide access to Central and South America," said Robinson.
While declining to reveal the cost of the acquisitions, Robinson said the move was expected to "significantly boost the operations" of NCIC.
"With the current economic limitations of the Caribbean, the company has strategically diversified its focus to target additional investments in the US market," the release said.
Norbrook Package Company, another subsidiary of NCIC, delivers some 600,000 packages to 50,000 clients annually, said Robinson, adding that it has been focusing on growth through a series of acquisitions. Norbrook Package was created last year by Norbrook Caribbean as a holding company for its courier assets.
Mailpac Express and Global Courier specialises in online shopping delivery; Airpak Express and Speed Courier, same-day islandwide delivery; Mailpac Ocean Freight, sea-freight delivery; Supply Chain Solutions deals with inventory distribution, and Airpak conducts round-town service. Two other acquisitions, Swoop and Zippy, were merged into Airpak.
Norbrook recently added an advertising arm, Valupak, to its expanding courier network.
The new company offers direct mail services, but it also provides an online platform for companies to upload artwork and develop their own promotional material, which are then printed and distributed by ValuPak, on their behalf, through its courier network.