Mark Szakonyi, Associate Editor | May 29, 2012 11:28AM EDT
FedEx plans to acquire a major Brazilian transportation and logistics company, as the parcel giant works to counters the increased UPS presence in the top South American economic engine.
FedEx didn’t disclose the terms of the acquisition of Rapidao Cometa Logistica e Transportes, a roughly 9,000-employee company with 45 operation branches, and about 770 vehicles and trailers. UPS is expanding its presence in Brazil through its $6.8 billion acquisition of TNT Express, Europe’s second-largest package delivery company.
“The acquisition of Rapidao Cometa — one of the largest logistics solutions providers in Brazil — is in line with 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,” said Juan Cento, FedEx Express president of Latin America and the Caribbean.” FedEx will now be able to provide a more comprehensive portfolio of services in Brazil, including international air express, domestic ground and value-added services such as supply chain and logistics solutions.”
The FedEx acquisition of Rapidao Cometa, a company that the former has worked with for 11 years, is the latest acquisition aimed at countering the UPS expansion through the purchase of TNT. FedEx said in mid-April that it is in negotiations to buy Tatex, a French express shipping company, and the Memphis-based company bought Polish courier company Opek two week earlier.
For UPS, Brazilian revenue growth helped drive a 7.8 percent rise in its average revenue per package in the Americas in the first quarter compared to the same period a year ago. That pricing increasingly helped offset a slip in daily package volume of 2 percent.
Rapidao Cometa has the capacity to reach more than 3,500 locations and serves all the states within Brazil. The acquisition will expand the FedEx workforce in Brazil to more than 9,500.
Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @szakonyi_joc.
