FedEx buying Brazilian logistics company
FedEx Corp said Tuesday that it is buying Brazilian transportation and logistics company Rapidão Cometa Logística e Transportes SA to expand its presence in the region.
Financial terms were not disclosed.
Rapidão has served as an authorised FedEx representative in Brazil for the past 11 years and is one of the largest logistics companies in Brazil, FedEx said.
The acquisition is part of "our long-term strategy to grow our Latin American business and better serve our customers seeking to enter or expand their businesses in the Brazilian market," Juan N. Cento, president of FedEx Express, Latin America and Caribbean, said in a statement.
The deal includes about 770 vehicles and trailers, approximately 9,000 workers in Brazil and 45 branches. Rapidão's logistics, distribution and express businesses will be integrated into FedEx in phases over an 18- to 24-month period after the buyout is complete.
The acquisition is expected to close in the third quarter. Once it is complete, FedEx will be able to offer all international services to Rapidão customers.
FedEx, the world's second-largest package delivery company, is based in Memphis, Tennessee.