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FedEx Corp. on Aug. 30 agreed to acquire a Colombian freight-forwarding company and its affiliate to expand its FedEx Logistics offerings in Latin America.
Cargex S.A., which has more than 25 years of experience, focuses on export management of perishable goods. Affiliate Agencias de Aduanas Aduanamos S.A. Nivel 2 specializes in customs brokerage services.
The acquisition is expected to close later this year and is subject to customary closing conditions, as well as a Colombian regulatory filing, according to the Memphis, Tenn.-based company. Terms were not disclosed.
Headquartered in Bogotá, Cargex has operations in Bogotá, Medellin, Cartagena, Buenaventura and Santa Marta. It would operate as a subsidiary of FedEx Logistics upon closing.
FedEx Logistics provides supply chain solutions, specialty transportation, cross border e-commerce technology services, customs brokerage, and trade management tools and data.
“The addition of Cargex offers future growth opportunities in the Latin American region, a key market for us,” Udo Lange, chief operating officer and incoming president and CEO at FedEx Logistics, said in a company release. “This acquisition perfectly complements the round-trip Colombia-to-Miami flight recently announced by FedEx Express. We look forward to welcoming our new team members into the FedEx family and will utilize their expertise to make this integration a success” as it connects with more customers throughout the region.
The FedEx Logistics organization had about 20,000 employees, according to FedEx Corp.’s fourth-quarter earnings report for the period ended May 31. FedEx is scheduled to release its Q1 earnings Sept. 17.
FedEx Logistics is included in “corporate, other and eliminations” in the company’s segment reporting.
FedEx Corp. ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. FedEx Logistics ranks No. 11 on the Transport Topics Top 50 list of the largest logistics companies in North America. — Transport Topics