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Thread: FedEx acquires Genco in big push to match UPS, DHL in contract logistics

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    Default FedEx acquires Genco in big push to match UPS, DHL in contract logistics

    FedEx Corp., making its boldest foray ever into the third-party logistics (3PL) field, said late yesterday it acquired Genco Supply Chain Solutions, a Pittsburgh-based contract logistics provider, for an undisclosed sum.

    The deal, scheduled to close sometime in 2015, affirms FedEx's strategy of expanding into areas beyond its core transportation offerings. It also narrows the gap between the company and its rivals, UPS Inc. and DHL Corp., for market share in the global supply chain management segment, an area where, until now, FedEx has not been a relevant player.
    It is unclear how Genco will be integrated into FedEx; FedEx currently has a small supply chain group, and there appears to be little, if any, overlap between FedEx and Genco. Also unclear is how much FedEx paid for Genco. According to Benjamin J. Hartford, transportation analyst at investment firm Baird, other high-quality 3PLs have fetched a multiple of between 7 and 9 times earnings before interest, taxes, depreciation, and amortization (EBITDA), a marker of cash flow. For example, XPO Logistics Inc., a fast-growing 3PL, paid a multiple of around 8 in July when it acquired New Breed Logistics, also considered a top-tier contract logistics provider, according to Hartford.
    FedEx acquires Genco in big push to match UPS, DHL in contract logistics – DC Velocity

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    Scab Hating Union Thug

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    Default Re: FedEx acquires Genco in big push to match UPS, DHL in contract logistics

    This was brought up to those purple koolaid drinkers......they all believe they will be just fine with no worries of huge amounts of work disappearing to other carriers at the cheapest rate.

    Sent from my SGH-T399 using Tapatalk
    Yankee, slavenomore and twoguns like this.

 

 

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