FedEx Express has reached a conditional agreement to acquire the international express business of Israel’s Flying Cargo Group.
Flying Cargo provides logistics, warehousing, fulfilment and distribution services in Israel for sectors including e-commerce, return goods and domestic pick-up and delivery, and will continue to own and manage these activities.
The acquisition is anticipated to close in the first half of 2019 and is subject to regulatory approval.
Upon closing, the current licence agreement between FedEx Express and Flying Cargo Group will expire.
Until regulatory approval is obtained and the transaction is closed, FedEx Express through its TNT subsidiary and Flying Cargo’s international express business will continue to operate independently.
Bert Nappier, president of FedEx Express Europe and CEO of TNT says: “Israel has been and remains an important market for FedEx, and our strong reputation in the market is built on nearly 30 years of trust with our partner and the employees of Flying Cargo.
“This exciting acquisition, once closed, leverages that relationship to offer customers an even broader portfolio of services with a seamless link to our unrivalled global network.”
Avi and Dany Reik, owners of Flying Cargo Group say it was a “privilege” introducing FedEx to the Israeli market, saying: “This step demonstrates the successful relationship. We are convinced that while the Flying Cargo Group will continue to develop our other logistics and distribution businesses, FedExExpress will even better meet the evolving needs of customers in Israel.”
FedEx Express began serving Israel through the international division of Flying Cargo Express in 1990, and since May 2016, TNT Express including TNT Israel has been part of the global FedEx group of companies.