FedEx announces plan to buy Watkins Motor Lines for $780 million

| Wednesday, May 31, 2006

FedEx Corp. announced Friday, May 26, an agreement to acquire the less-than-truckload operations of Watkins Motor Lines and certain affiliates for $780 million, payable in cash.

Watkins Motor Lines, a privately held company headquartered in Lakeland, FL, is a provider of long-haul LTL services. With more than $1 billion in annual revenue, Watkins will be rebranded FedEx National LTL and operate as a separate network within the FedEx Freight segment.

The transaction is expected to close during the first quarter of fiscal 2007 and is subject to customary conditions, including government approvals. The acquisition is not expected to have a material effect on the fiscal 2007 financial results of FedEx, according to a press release.

As part of the transaction, FedEx has also agreed to acquire the assets of Watkins’ business in Canada, Watkins Canada Express. Watkins Canada Express will be rebranded FedEx Freight Canada.

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