FedEx Express announces plans to acquire Israel-based Flying Cargo Group
Flying Cargo Group provides myriad logistics services, including: warehousing, fulfillment, and distribution of goods in Israel, e-commerce, return goods services, and domestic pick up and delivery in Israel.
FedEx Express, the largest subsidiary of global transportation and logistics power FedEx, said last week that it has reached a conditional agreement to acquire the international express business of Israel-based Flying Cargo Group.
FedEx officials said that it has had a 30-year relationship with Flying Cargo Group, adding that this agreement was reached at the time that the service agreement between the companies was set to expire. And they added that this agreement is expected to be made official during the first half of 2019 and subject to regulatory approval. When the deal is official, FedEx said that the current licensing agreement between the companies will officially expire, and that until regulatory approval is granted FedEx Express, through its Israel-based TNT subsidiary, and Flying Cargo Group’s International Express business in Israel will remain independently operated.
“Israel has been and remains an important market for FedEx, and our strong reputation in the market is built on nearly 30 years of trust with our partner and the employees of Flying Cargo,” said Bert Nappier, president of FedEx Express Europe and CEO of TNT, in a statement. “This exciting acquisition, once closed, leverages that relationship to offer customers an even broader portfolio of services with a seamless link to our unrivaled global network.”
Flying Cargo Group provides myriad logistics services, including: warehousing, fulfillment, and distribution of goods in Israel, e-commerce, return goods services, and domestic pick up and delivery in Israel.
The relationship between FedEx Express and Flying Cargo Group goes back to 1990, when FedEx Express first started providing service in Israel through Flying Cargo’s International Division. This subsequently led to the company providing various international express transportation services, including import and export shipments to more than 220 global countries and territories. FedEx noted that since May 2016 TNT Express and TNT in Israel, has been part of the global FedEx group of companies.
“It was a privilege introducing FedEx Express to the Israeli market,” said Avi and Dany Reik, owners of Flying Cargo Group, in a statement. “This step demonstrates the successful relationship. We are convinced that while the Flying Cargo Group will continue to develop our other logistics and distribution businesses, FedEx Express will even better meet the evolving needs of customers in Israel.”
