FedEx Express is to takeover the international express business of Israeli logistics and distribution firm Flying Cargo Group.
The two companies have been cooperating for nearly 30 years and have reached a conditional agreement as Flying Cargo’s service agreement with FedEx Express is coming to an end. Upon closing, the current license agreement between FedEx Express and Flying Cargo Group will expire.
The acquisition is set to close in the first half of calendar year 2019 and is subject to regulatory approval. No financial details of the deal were released.
Until regulatory approval is obtained and the transaction is closed, FedEx Express, through its TNT subsidiary in Israel, and Flying Cargo Group’s International Express business in Israel will continue to operate independently.
FedEx Express Europe and chief executive officer of TNT, Bert Nappier said: “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.
“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.”
FedEx Express began serving Israel through the International Division of Flying Cargo Express in 1990, ultimately providing a wide range of international express transportation services, including import and export of shipments to more than 220 countries and territories worldwide.
Since May 2016, TNT Express – including TNT in Israel—has been part of the global FedEx group of companies.
Flying Cargo Group owners Avi and Dany Reik said it was a “privilege” introducing FedEx Express to the Israeli market.
They added: “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.”
The Flying Cargo Group provides logistics services, warehousing, fulfillment and distribution of goods in Israel. The services offered include e-commerce, return goods services and domestic pick-up and delivery in Israel, and it will continue to own and manage these activities.
