FedEx Corp. (FDX) struck an agreement to acquire privately-held Polish shipping company Opek Sp.z o.o., a deal that sees it push forward on European expansion plans on the heels of rival United Parcel Service Inc.'s (UPS) $6.8 billion offer for Dutch package company TNT Express NV (TNTEY, TNTE.AE).
Financial details of the transaction weren't disclosed.
FedEx, which expects a closing on the deal sometime this summer, said the purchase gives its key express-shipping business access to a nationwide domestic ground network with an estimated $70 million in annual revenue and 12.5 million shipments a year.
"We have an excellent strategy that has steadily advanced our position in the region, and we are well positioned for profitable growth as we increase the number of direct-served locations in Europe," said Chairman and Chief Executive Frederick W. Smith.
Discussing fiscal third-quarter results last month, Smith said he was confident in FedEx's plans "to continue expansion [in Europe] primarily through organic growth."
He declined at the time to comment on rival UPS' plan to buy TNT, but he reiterated that FedEx has no need for a big acquisition in Europe.
Shares closed Wednesday at $90.64 and were inactive in premarket trade. The stock is up 8.5% since the start of the year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com
