FedEx buys Genco to improve e-commerce offering
December 17, 2014
FedEx is buying Genco, one of the largest third-party logistics providers in North America, in a bid to increase its e-commerce offering. The financial details of the purchase were not revealed but FedEx said Genco had more than $1.6bn in annual revenue and more than 11,000 employees at over 130 operations.
When the transaction is completed next year, Genco’s portfolio of supply chain services should expand existing FedEx service offerings in the evolving retail and e-commerce markets.
“The acquisition of Genco will transform our global portfolio through the addition of new best in class supply chain management services,” said Frederick Smith, chairman and CEO of FedEx. “As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services.”
Processing more than 600 million returned items annually from many of the world’s leading brands, Genco is considered a pioneer and market leader in reverse logistics, providing triage, test and repair, remarketing and product liquidation services. The company provides a complete range of product lifecycle logistics services to customers in the technology, consumer, industrial, retail and healthcare markets.
“With similar corporate cultures, shared values and unwavering focus on developing world-class logistics solutions, FedEx and Genco are a great fit,” said Herb Shear, executive chairman of Genco.
Todd Peters will continue as Genco CEO.
The transaction is subject to customary closing conditions, including compliance with US and Canadian antitrust law requirements. Genco will continue to operate as an independent company until the transaction is closed next year.