FedEx Express has acquired the logistics, distribution and express businesses of AFL Pvt. Ltd. and its affiliate, Unifreight India Pvt. Ltd. This acquisition will expand FedEx’s domestic ground network and added capabilities in India. FedEx expects that this transaction, which is subject to customary closing conditions, will close in its third fiscal quarter, which ends February 2011.
Founded in 1945, AFL Pvt. Ltd. is a privately-held Indian transportation and logistics provider. Specifically, this acquisition includes the purchase of:
● AFL Logistics and Distribution, which consists of a range of products and services, including supply chain management, warehousing and a ground distribution network that provides day-definite ground transportation for small packages and heavyweight shipments through more than 200 daily scheduled routes; and
● AFL WiZ Express, which offers express services through more than 160 Express Service Centers, servicing more than five thousand zip codes across 144 cities in India.
“The acquisition supports our long-term strategy to grow our international business and better serve our customers seeking to expand or enter the Indian market,” says Michael L. Ducker, COO of FedEx Express. The move will enable FedEx Express to expand its range of service options such as domestic ground and value-added services, including warehousing, logistics solutions and third party logistics.
After the acquisition closes, Cyrus Guzder, chairman of AFL, will assume the role of executive advisor to FedEx.