FedEx Corp. said it’s completed the first stage of an acquisition by signing agreements to buy logistics services provider Supaswift (Pty) Ltd. in five countries in Southern Africa, including South Africa, Malawi, Mozambique, Swaziland and Zambia.
The company is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia.
These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions.
Once the acquisition is completed, FedEx Express will have direct access across seven Southern African markets via 39 facilities and will welcome about 1,000 Supaswift employees to its ranks.
“The acquisition of Supaswift’s businesses, once closed, will provide customers with greater access to some of the world’s most rapidly growing economies,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp., in a statement “It is an important step in our international growth strategy and further strengthens our FedEx Express portfolio.”
Supaswift started operations in South Africa in 1990. In 2005, Supaswift merged with MyExpress Pty Ltd., which had been offering FedEx Express international services in Southern Africa since 1991.
“The integration of Supaswift’s businesses will commence once the transaction has been closed and is expected to be achieved gradually over a number of months,” FedEx said.