FedEx Express to Acquire Flying-Cargo in Hungary
Acquisition Supports Previous Investments in Eastern Europe
BUDAPEST, Hungary--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) announced today that its FedEx Express unit signed an agreement to acquire its Hungarian global service participant, Flying-Cargo Hungary Kft. The transaction, which is the latest step in the company’s Eastern Europe expansion strategy, will give FedEx a wholly-owned operation in one of the region’s dynamic markets.
Flying-Cargo, a privately-held company, has been the FedEx global service participant in Hungary since 2003 and has a proven track record of providing high-quality service. All of Flying-Cargo’s day-to-day operations are expected to remain unchanged for the foreseeable future, and the company will function as a wholly-owned business of FedEx Express.
“Since the mid 1990’s, Hungary has proven to be one of the standout economies in Eastern Europe, with import and export growth rates of up to 7% projected until 2009,” said Robert W. Elliott, president of FedEx Express, Europe, Middle East, Africa and Indian subcontinent. “Due to increased demand from global customers, opportunities offered by local economic development, and most importantly, the outstanding team on the ground delivering services, the decision to acquire Flying-Cargo was seen as the next logical step in the ongoing development of our business in Hungary.”
FedEx Express began serving Hungary in 1990 using global service providers. Since that time it has continued to play an important role in connecting Hungary to the world, including:
* the launch of four weekly flights from Budapest to the FedEx European hub in Paris in 2004, improving transit and pick up times for customers;
* introduction of a classified “Dangerous Goods” express service to and from Hungary;
* introduction of a next-day service within Europe and to the United States, and;
* initiation of two to three business-day service to Asia.
“Hungary continues to rise in importance within the European Union. With this acquisition, FedEx will be able to invest more effectively and directly in Hungary and ensure we remain well-positioned to provide an unmatched customer experience,” said Michael Mühlberger, vice president Operations, FedEx Express Central & Eastern Europe.
“FedEx has expanded our network throughout Eastern Europe with a series of new flights and country openings over the past three years as part of our international growth strategy,“ said Michael L. Ducker, president of FedEx Express International. ”Central and Eastern Europe, which is growing at nearly three times that of Western Europe, presents significant opportunities for our customers.”
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