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.