By Satish Jindel
On Monday, FedEx Corp. spun-off its Freight division. What is left is the combined network of FedEx Express and FedEx Ground.
It’s an opportune time to remember that FedEx (NYSE: FDX) would be a distant third-place parcel carrier in the U.S. market without the acquisition of RPS as part of the $2.4 billion deal for Caliber System in 1998. And, were it not for RPS, FedEx likely wouldn’t have acquired Caliber and its regional less-than-truckload subsidiary, Viking Freight. FedEx wasn’t looking to get into the LTL ***** e, but had to buy Viking to get RPS.
FedEx founder Fred Smith liked the Viking acquisition so much that in 2001, he acquired American Freightways to be able to offer full coverage across the lower 48 states. And now, FedEx shareholders will receive one share of FedEx Freight (NYSE: FDXF) for every two shares they hold in the parcel delivery company.
At the time of the deal in 1998, RPS handled 1.3 million parcels per day while FedEx Express was delivering 3 million. Since then, the parcel industry has undergone enormous change.
On Monday, FedEx Corp. spun-off its Freight division. What is left is the combined network of FedEx Express and FedEx Ground.
It’s an opportune time to remember that FedEx (NYSE: FDX) would be a distant third-place parcel carrier in the U.S. market without the acquisition of RPS as part of the $2.4 billion deal for Caliber System in 1998. And, were it not for RPS, FedEx likely wouldn’t have acquired Caliber and its regional less-than-truckload subsidiary, Viking Freight. FedEx wasn’t looking to get into the LTL ***** e, but had to buy Viking to get RPS.
FedEx founder Fred Smith liked the Viking acquisition so much that in 2001, he acquired American Freightways to be able to offer full coverage across the lower 48 states. And now, FedEx shareholders will receive one share of FedEx Freight (NYSE: FDXF) for every two shares they hold in the parcel delivery company.
At the time of the deal in 1998, RPS handled 1.3 million parcels per day while FedEx Express was delivering 3 million. Since then, the parcel industry has undergone enormous change.
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