Global express carrier FedEx Corp. is buying ANC Holdings Ltd., a domestic express transportation company based in the United Kingdom, for £120 million (U.S. dollars $235.2 million). FedEx intends to more directly serve the entire British domestic market through this acquisition.
Michael Ducker, president of FedEx Express’ international arm, said ANC offers a comprehensive range of distribution and logistics services with an 80-location P&D network across the U.K. ANC, which generates more than £145 million (U.S. $275.5 million) in annual revenues, has 4,500 employees and a 2,200-vehicle fleet.
“This strategic investment enhances FedEx in the global express industry,” Ducker added. “U.K. businesses increasingly demand bundled transportation offerings so as to take advantage of global economic trends, such as the increasing percentage of high-tech, high-value manufactured goods, the growth of global trade, faster supply chains and logistics and the growth of the internet and e-commerce.”
“As the UK market continues to evolve and expand, customers increasingly seek a single provider of solutions for their domestic and international shipping to more efficiently manage their global supply chains,” said Robert Elliott, president of the Europe, Middle East, Africa and Indian subcontinent regions for FedEx Express. “This acquisition gives our customers access to broader business and transportation services and supports the delivery of an outstanding customer experience each and every day.”FedEx said ANC management would remain in place and report directly to Elliott. As part of the transaction, ANC shareholder LDC—the private equity division of Lloyds TSB Group plc—will exit its investment.