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