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FedEx Archives: 1999 Press Releases

( BW)(TN-FDX-GLOBAL-LOGISTICS)(FDX) FDX Global Logistics Agrees to Acquire GeoLogistics Air Services

    Business Editors

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 6, 1999--FDX Global Logistics Inc., a subsidiary of FDX Corporation (NYSE: FDX), has reached an agreement with GeoLogistics Corp. of Golden, Col., to acquire the assets of its subsidiary, GeoLogistics Air Services Inc. (GLAS), for approximately $116 million. GLAS is headquartered in Greensboro, N.C. The assets of GLAS will be put into a new company named Caribbean Transportation Services Inc. (CTS) which will be an operating subsidiary of FDX Global Logistics. The agreement is subject to approval by the U.S. Government.
    GLAS, the leading provider of airfreight forwarding services between the United States and Puerto Rico, specializes in arranging the shipment of heavyweight and oversized cargo. FDX Global Logistics, through its operating subsidiary Caliber Logistics, delivers integrated supply chain solutions for customers in targeted industries.
    "GLAS is a leading service provider in the medical, pharmaceutical and technology sectors, so our new company will be a strong complement to Caliber Logistics, which serves the high-tech and high-value-added markets," said Joseph C. McCarty, chief executive officer of FDX Global Logistics. "With the addition of airfreight forwarder services, FDX Global Logistics can better streamline its customers' supply chains to cut costs and improve operating efficiency."
    FDX Global Logistics, through its Caliber Logistics subsidiary, is a recognized leader in the contract logistics marketplace, offering global transportation management services, just-in-time logistics programs, contract warehousing, dedicated transportation services and finished goods distribution.
    FDX, a $17 billion holding company, provides comprehensive transportation, logistics and supply chain management solutions. In addition to FDX Global Logistics, other principal FDX subsidiaries include: Federal Express Corp., the world's largest express transportation company; RPS Inc., a business-to-business ground package carrier; Viking Freight Inc., a less-than-truckload carrier operating principally in the western United States; and Roberts Express Inc., a critical-shipment carrier.

     --30--kh/na*

     CONTACT:  FDX Corporation, Memphis
               Shirlee M. Clark, 901/395-3463
               http://www.fdxcorp.com

     KEYWORD:  TENNESSEE COLORADO NORTH CAROLINA
     INDUSTRY KEYWORD:  TRANSPORTATION TRAVEL/AIRLINES MERGERS/ACQ