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In 1988, Federal Express made its first big purchase through its acquisition of Flying Tiger Line, an air cargo company going back to WWII.
It made Federal Express the world's largest cargo airline.
The deal provided them much needed operational scale.
The year 1998 saw Federal Express, by then a rapidly expanding player in time-sensitive deliveries, make another decisive move to broaden their services by acquiring Caliber System Incorporated.
Caliber was a holding company that owned a constellation of transportation and logistics providers.
In one fell swoop, Federal Express absorbed Caliber's wide array of subsidiaries, including ground courier RPS, expedited shipping outfit Roberts Express, LTL carrier Viking Freight, Caribbean freight forwarder Caribbean Transportation Services, and logistics providers Caliber Logistics and Caliber Technology.
This momentous purchase effectively allowed Federal Express to expand beyond just air express and offer a diverse portfolio of shipping solutions.
Overnight, their footprint grew substantially in the realms of ground transport, freight, customs brokerage, and third-party logistics.
This is the point where Federal Express began its metamorphosis into FedEx Corporation—the sprawling transportation and business services titan we know today.
By snapping up Caliber, Federal Express gained vital capabilities to round out its portfolio. Once again, their ambitions to dominate the world of shipping and logistics were made clear.
The dawn of the new millennium saw the freshly minted FedEx Corporation seek to expand its international reach by acquiring logistics firm Tower Group International.
Based in Miami, Tower Group was a player in global freight forwarding and customs brokerage.
This strategic purchase served to bolster FedEx's capabilities outside of North America.
Overnight, their international shipping competencies grew thanks to Tower Group's worldwide network. Additionally, by absorbing Tower Group and its customs expertise, FedEx gained vital skills to better serve customers with complex cross-border needs.
Buying up Tower Group in 2000 marked another critical move for the rapidly evolving transportation conglomerate, as it continued to diversify into new areas beyond its signature overnight deliveries.
This deal was instrumental in cementing FedEx's stature as a logistics giant fit to compete on a global scale in the 21st century.
As part of its efforts to expand competencies in the realm of global shipping, the freshly minted FedEx Corporation acquired WorldTariff in the early months of 2000.
WorldTariff was a firm focused on providing customs data and international trade compliance services.
The purchase supplemented FedEx's growing customs brokerage capabilities.
WorldTariff's databases and expertise with global trade further bolstered FedEx's burgeoning cross-border shipping solutions.
Historians cite the WorldTariff acquisition as yet another critical building block as FedEx pieced together the components to become a diversified logistics powerhouse suited for the era of globalization.
The purchase granted important new competencies to address the complex duties and regulations involved with international deliveries.
In February of 2004, FedEx sought to expand its retail footprint by acquiring popular American copy chain Kinko's Incorporated.
With over 1,200 locations across the states providing printing, business services, and shipping solutions, Kinko's represented an opportunity for FedEx to gain greater public access.
After the purchase, FedEx swiftly moved to rebrand the chain as FedEx Kinko's—markings its efforts to integrate the stores under its corporate banner.
This deal is emblematic of a period when FedEx aggressively moved into new sectors through strategic acquisitions, having evolved beyond its origins as strictly an express courier.
Gaining Kinko's allowed FedEx to tune its retail strategy and offered valuable real estate for consumers to access its now wide-ranging delivery services firsthand.
The Kinko's deal was an integral step in FedEx's maturation into the diversified logistics empire they are today.
In September of 2004, FedEx purchased a small parcel consolidator named Parcel Direct, which was owned by printing firm Quad Graphics.
Parcel Direct specialized in aggregating high volumes of small packages from retailers and e-commerce sellers for efficient delivery.
After the acquisition, FedEx rebranded to FedEx SmartPost—providing a much larger list of shipping services.
This was a strategic acquisition as an early effort by FedEx to cater towards booming online retail, by offering efficient consolidation services.
By purchasing Parcel Direct, FedEx gained technology and infrastructure that would allow it to cost-effectively handle huge e-commerce package volumes.
Rebranding it SmartPost reflected ambitions to be the go-to service for major e-tailers.
In April of 2015, FedEx announced its biggest acquisition yet, purchasing Dutch delivery firm TNT Express for €4.4 billion euros.
TNT was one of Europe's leading courier services, with extensive operations across the continent. Historians view this blockbuster deal as reflective of FedEx's ambitions to be a truly dominant GLOBAL player in logistics.
Gaining TNT's well-established European infrastructure allowed FedEx to dramatically bolster international services.
Overnight they absorbed robust air and road networks spanning over 200 countries. Given TNT's strong European clientele and operations—this megamerger was instrumental in FedEx cementing itself as a transatlantic shipping titan fit for the 21st century’s globalized economy.
The multi-billion dollar TNT Express deal marked FedEx's largest effort yet to reinforce their position as the premiere player in worldwide delivery solutions.
As e-commerce grew explosively in the late 2010s, FedEx moved to bolster its last-mile delivery capabilities by acquiring UK firm P2P Mailing Limited for £92 million pounds sterling.
P2P was an emerging player specializing in local courier solutions, connecting retailers with customers' doorsteps.
This 2018 deal was consistent with FedEx efforts to continually evolve with the times.
Through the deal, FedEx was able to optimize local delivery routes amidst booming online shopping. Helping its last-mile delivery.
Thus the P2P Mailing deal marked another instance of FedEx strategically acquiring assets to sharpen its competitive edge in an evolving landscape.
Possessing robust last-mile networks primed FedEx to thrive as e-commerce required rapid, high-volume residential delivery. Once again, FedEx showed its knack for staying ahead of trends.
In December 2020, FedEx acquired ShopRunner, an e-commerce platform providing membership-based retailer services.
There was a pandemic-driven surge in online shopping and this was a no brainer to optimize their legacy systems.
FedEx also obtained ShopRunner's established relationships as a plus.
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