FedEx completes acquisition of Watkins

Sept. 5, 2006
FedEx Corp. today announced it has completed its $780 million cash purchase of the LTL operations of Lakeland, FL-based Watkins Motor Lines and certain affiliates

FedEx Corp. today announced it has completed its $780 million cash purchase of the LTL operations of Lakeland, FL-based Watkins Motor Lines and certain affiliates. Watkins Motor Lines provides long-haul LTL services and has more than $1 billion in annual revenue.

The operations of Watkins Motor Lines and Watkins Canada Express, Watkins' LTL carrier in Canada, which together include more than 140 service centers and more than 14,000 tractors and trailers, will be re-branded FedEx National LTL and FedEx Freight Canada, respectively. Re-branding of both operations will begin immediately.

“These strategic additions to the FedEx portfolio offer more flexibility and greater value to shippers in the less-than-truckload sector,” said Frederick W. Smith, chairman, president & CEO of FedEx Corp. “FedEx Freight, FedEx National LTL and FedEx Freight Canada create a reliable, single-source provider of one- and two-day regional as well as long-haul LTL services that customers have been requesting.”

The acquisition will also improve FedEx’s ability to offer bundled transportation solutions with other FedEx operating companies, specifically FedEx Express and FedEx Ground, the company said.

FedEx National LTL and FedEx Freight Canada will each operate as a separate network within the FedEx Freight segment, which also includes FedEx Freight, FedEx Custom Critical and Caribbean Transportation Services. More than 470 service centers comprise the FedEx Freight, FedEx National LTL, and FedEx Freight Canada networks. The companies will operate nearly 54,000 tractors and trailers.

“As integration moves forward, FedEx National LTL will strengthen its focus on providing core long-haul services, while FedEx Freight Canada begins identifying service enhancement opportunities as we work together to grow our LTL market share throughout North America,” said Douglas G. Duncan, president & CEO of FedEx Freight.

For previous coverage, read FedEx to acquire Watkins into LTL network

For more information, visit www.fedex.com

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...