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FedEx Express is set to acquire Israeli fulfilment and warehouse operator Flying Cargo Group as a 30-year partnership agreement comes to an end.
FedEx Express Europe president Bert Nappier said: “Israel remains an important market for FedEx, and our strong reputation there is built on nearly 30 years with Flying Cargo,”
“This exciting acquisition leverages that relationship to offer customers an even broader portfolio of services with a seamless link to our unrivalled global network.”
FedEx Express began serving Israel through the international division of Flying Cargo Express in 1990 and now covers 220 territories from the region.
The Flying group supplies services including e-commerce, return goods and domestic pick-up and delivery in Israel, and it will continue to manage these activities.
The purchase is expected to complete before the end of the first half, subject to regulatory approval.
Owners of Flying Cargo Avi and Dany Reik said: “We are convinced while we will continue to develop our other logistics and distribution businesses, FedEx Express will even better meet the evolving needs of customers in Israel.”
Parent company FedEx Group slashed profit forecasts at the end of last year, due to concerns over the global economy, with the express division experiencing “significant weakness”. Second-quarter international priority volumes were up just 1%, while international economy volumes increased 9%.