FedEx wraps up acquisition of GENCO Distribution System
US based courier delivery services company FedEx has completed acquisition of GENCO Distribution System.
GENCO has grown to be a major third party logistics provider in North America since it started operations in 1898.
The acquisition is expected to offer an extensive range of logistics services to the customers, in addition to FedEx's portfolio of transportation, e-commerce and business services.
GENCO processes more than 600 million returned items per yearand offers reverse logistics services including triage, test and repair, remarketing and product liquidation solutions.
FedEx had announced about the deal on 15 December 2014 and aims to use GENCO's existing network to expand its 'offerings in the evolving retail and e-commerce markets'.
GENCO will operate as a subsidiary for the courier delivery firm, which has its headquarters in Tennessee, US. Financials for the business unit will be reported thorough FedEx's Ground business segment.
GENCO chief executive officer Todd R. Peters will continue to perform in his present role.
FedEx Chairman and CEO Frederick W. Smith said: "We believe this acquisition demonstrates our commitment to our customers with enhanced supply chain and logistics offerings, which will also continue to drive growth. We look forward to starting the integration process."
According to Smith, the acquisition is likely to transform FedEx's global portfolio through the amalgamation of new best in class supply chain management services.
"As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services", he said.
Image: FedEx completes GENCO buyout. Photo: courtesy of AEMoreira042281 / Wikipedia