FedEx buying parcel consolidator for $120 million
Monday, August 9th 2004, 10:10 am
By: News On 6
MEMPHIS, Tenn. (AP) _ FedEx is buying a company that ships orders for catalogue and Internet retailers.
FedEx officials in Memphis announced Monday morning the company will purchase Parcel Direct, paying $120-million cash.
The company will become a division of FedEx Ground.
FedEx spokesman Jess Bunn says Parcel Direct is specially designed for slower-moving, lightweight packages.
Parcel Direct is based in New Berlin, Wisconsin. It has 450 employees and revenues of about $250-million, as a division of Quad/Graphics.
Packages handled by Parcel Direct are taken to 12 company locations around the country where they are sorted and consolidated -- then taken to the US Postal Service for final delivery.