FedEx to Buy Logistics Company GENCO
A recognized leader in reverse logistics, GENCO transforms the FedEx suite of e-commerce and supply chain solutions.
Pittsburgh-based GENCO, with more than 130 warehouse locations, has customers in technology, consumer, industrial, retail and health-care markets.
Its services include contract packaging, processing returned items, warehousing, transportation services and inventory liquidation.
The sale price wasn’t disclosed.
GENCO traces its roots to a business that made deliveries with a horse and wagon starting in 1898. In 2010, Genco Supply Chain Solutions bought ATC Technology Corp. for about $512.6 million and the company received an investment from private-equity firm Greenbriar Equity Group LLC.
Todd R. Peters will remain chief executive of GENCO.
FedEx has seen its revenue grow recently as a restructuring that began in 2012 has started to pay off. In its latest quarter, the package-delivery giant beat Wall Street’s expectations for earnings and revenue, driven by strength in ground, freight and express operations.
FedEx News Release
FedEx to Expand Global Portfolio of Solutions with Acquisition of GENCO
A recognized leader in reverse logistics, GENCO transforms the FedEx suite of e-commerce and supply chain solutions
MEMPHIS, Tenn., December 15, 2014 FedEx Corp. announced today that the company signed an agreement to acquire GENCO, one of the largest third-party logistics providers in North America. With a comprehensive portfolio of supply chain services, GENCO’s expertise will expand existing FedEx service offerings in the evolving retail and e-commerce markets.
Processing more than 600 million returned items annually from many of the world’s leading brands, GENCO is considered a pioneer and market leader in reverse logistics, providing triage, test and repair, remarketing and product liquidation solutions. With $1.6 billion in annual revenue and more than 11,000 teammates at over 130 operations, GENCO offers a complete range of product lifecycle logistics® services to customers in the technology, consumer, industrial, retail, and healthcare markets.
“The acquisition of GENCO will transform our global portfolio through the addition of new best in class supply chain management services,” said Frederick W. Smith, Chairman and CEO of FedEx Corp. “As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services.”
“With similar corporate cultures, shared values and unwavering focus on developing world-class logistics solutions, FedEx and GENCO are a great fit,” said Herb Shear, Executive Chairman, GENCO. “I am especially pleased that Todd R. Peters will continue as GENCO CEO and to know that our teammates everywhere will make significant and lasting contributions to our customers as members of the FedEx family.”
The transaction is subject to customary closing conditions, including compliance with U.S. and Canadian antitrust law requirements. GENCO will continue to operate as an independent company until the transaction is closed in the new calendar year.
J.P. Morgan Securities LLC and Baker & McKenzie served as advisors to FedEx on this transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Republic Partners, and Staley Capital served as advisors to GENCO.