("FedEx To Buy Brazilian Transport Co. Rapidao Cometa," at 8:32 a.m. EDT, misstated the name of the Polish shipping company acquired by FedEx in the third paragraph. The correct version follows:)
FedEx Corp. (FDX) has agreed to buy Brazilian logistics and transport company Rapidao Cometa Logistica e Transportes S.A. as it furthers its expansion into Latin America.
The terms of the deal, expected to close in the third quarter, weren't disclosed.
Shipping giant FedEx has been acquisitive lately in its bid to expand internationally, recently acquiring French express-transportation company Tat Express and Polish shipping company Opek Sp.z o.o. in its bid to expand in Europe.
The company said the acquisition of Rapidao Cometa, one of the largest logistics providers in Brazil, is in line with the company's long-term strategy of expansion in Latin America. Rapidao Cometa has been an authorized representative of FedEx for 11 years.
"Brazil is a market with tremendous growth potential--both in the overall economy, as well as in the logistics sector," said Juan N. Cento, president of FedEx Express in 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," he said.
After the deal closes, FedEx Express will offer all international services to Rapidao Cometa customers, while FedEx customers will have access to domestic package and freight services, logistics and distribution services.
The acquisition includes 45 operational branches and around 145 distribution points, roughly 770 vehicles and trailers, and 9,000 employees across Brazil, for an expected total of 9,500 FedEx employees in Brazil. The integration will be achieved in phases over a period of 18 to 24 months.
FedEx reported in March that its fiscal third-quarter earnings more than doubled from a year earlier, even as it noted that the U.S. and global economies had slowed.
FedEx shares closed at $89.28 on Friday and were inactive premarket. Trading was closed Monday for the Memorial Day holiday. The stock is up 6.9% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; email@example.com