FedEx has further increased its foothold in the ecommerce sector with the acquisition of returns company Genco. The merging of these two logistic giants is a massive step forward for FedEx and will enable the firm to provide both a delivery and returns service to its ecommerce customers.
With 1.6billion in annual revenue, an employee count of over 11,000 and over 130 operations, Genco is a considered a market leader in reverse logistics – according to a statement by FedEx. Chairman and CEO of FedEx, Frederick W. Smith, said that ‘the acquisition of Genco will transform our global portfolio through the addition of new best in class supply chain management service.’ Smith continued that ‘as e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services.’ FedEx has also confirmed that Genco CEO, Todd Peters, will also remain with the company as CEO following the acquisition.
The deal was announced during the busiest period of the year for ecommerce, with Fed Ex expecting to record shipments of 290 million packages in the period between Thanksgiving and Christmas Eve. The transaction will be finalized in January 2015.
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