FedEx Buys Kinkos
FedEx announced Tuesday that it would acquire Net-savvy business-services company Kinko's in a $2.4 billion cash deal.
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FedEx Agrees to $2.4 Billion Deal for Kinko�s
MEMPHIS, Tenn. (December 31, 2003) - FedEx Corp. said Tuesday it signed an agreement to buy copy center operator Kinko�s for $2.4 billion in cash.
The deal between the shipping giant and New York-based investment firm Clayton, Dubilier & Rice, which owns 75% of Kinko�s outstanding shares, is designed to give FedEx deeper reach into the small- and medium-sized business markets and allow it to sell more corporate services such as outsourced copying, printing and document management.
The acquisition follows a similar move by Atlanta-based rival United Parcel Service, which acquired Mail Boxes Etc. in 2001 and began rebranding those locations as UPS Stores last spring.
Privately held Kinko�s expects revenue of $2 billion for the calendar year ending Wednesday. FedEx, a $23 billion company, predicts the acquisition will have an accretive impact on its earnings in its 2005 fiscal year, which begins June 1, 2004.
FedEx has been the exclusive shipping provider for Kinko�s since 1988, and already operates staffed counters in 134 Kinko�s stores.
Posted by Craig at December 31, 2003 04:18 PM