Release Date: 02 November 2006
Release ID: 366
FedEx Corporation (NYSE: FDX) announced today that its FedEx Express unit has signed an agreement to acquire its Indian service provider, Prakash Air Freight Pvt. Ltd. (PAFEX) for US$30 million, payable in cash. The transaction, which is subject to customary conditions including Indian government approval, will further extend the FedEx leadership position in the global express industry with a wholly-owned operation in one of the world’s fastest growing markets.
PAFEX, a privately held company, is one of the largest domestic express companies operating in India, with more than 384 offices and depots serving nearly 4,400 destinations. The nationwide network covers every major city in India. PAFEX began domestic express operations in 1986 and has been the FedEx service provider in India since 2002.
“This acquisition will solidify the FedEx leadership position within India. As a valued and trusted Global Service Participant, bringing PAFEX operations within the company is the logical next step in the ongoing development of our Indian business,” said Robert W. Elliott, president of FedEx Express, Europe, Middle East, Africa and Indian subcontinent.
FedEx Express began operating in India in 1984. Since that time it has continued to play a leadership role in connecting India to the world:
FedEx was the first express company to introduce an all cargo flight in India in 1997;
FedEx began the first overnight express service between India and China in 2005;
FedEx was the first express air cargo company to operate two gateways in India (Mumbai and Delhi), with a total of 16 MD-11 flights in and out per week.
“As one of the fastest growing economies in the world, India presents enormous opportunities for our customers. With this acquisition, we would ensure continued outstanding customer service through increased access for our customers doing business to and from India,” said Michael L. Ducker, president of FedEx Express International.
JP Morgan acted as financial advisor to FedEx.
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