FedEx Agrees to Buy Genco
FedEx Corp. said it has agreed to buy third party logistics provider Genco to broaden the buyer’s presence in the retail and e-commerce markets.
Terms for the purchase of Genco, which has annual revenue of $1.6 billion, weren’t disclosed.
The announcement by FedEx, which ranks No. 2 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers, cited the range of services offered by privately held Genco, including reverse logistics, remarketing and product liquidation.
Genco, based in Pittsburgh, has more than 11,000 workers. It’ ranks No. 13 on Transport Topics Top 50 Logistics companies.
Memphis, Tennessee-based FedEx is adding logistics to a portfolio that includes express, ground, less-than-truckload and international trade management services.
“The acquisition of Genco will transform our global portfolio through the addition of new best-in-class supply chain management services,” CEO Frederick Smith said. “As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services.”
A statement from Genco Executive Chairman Herb Shear said that CEO Todd Peters will continue in that role. The statement noted that the logistics operator will continue as an independent company until the transaction is completed.
Shear described the companies as “a great fit” because of similar corporate cultures and values.
