FedEx May Buy Watkins for $1 Bln., Paper Reports

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edEx Corp. is planning to buy Watkins Motor Lines, the largest U.S. privately run less-than-truckload carrier, in what could be a $1 billion deal, the Memphis Commercial Appeal reported Sunday.

Neither FedEx nor Watkins would confirm details of the deal, but the paper reported that Memphis-based FedEx will announce the acquisition as early as June 1.

Watkins is about one-third the size of FedEx’s LTL unit FedEx Freight, the paper reported.

The purchase would give FedEx Freight seamless services into Mexico and Canada, which it now serves through contractors, and a truckload division.

Last year, Watkins’ revenue exceeded $1 billion, up more than 7% from 2004, the Commercial Appeal reported.

Watkins is part of Watkins Associated Industries, which is ranked No. 21 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.

FedEx Corp. is ranked No. 2 on the Transport Topics 100.