MEMPHIS: FedEx has acquired major 3PL Genco and e-trade facilitator Bongo International. Terms of the two purchases were not disclosed and are subject to regulatory approval in the U.S. and Canada.
With US$1.6 billion in annual revenue, Pittsburgh-based Genco is a self-described "forefather in reverse logistics – providing triage, test and repair, remarketing and product liquidation solutions" to technology, consumer, industrial, retail and healthcare customers.
"The acquisition of Genco will transform our global portfolio through the addition of new best in class supply chain management services," said Fred Smith, chairman and CEO of FedEx Corp. "As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services."
The announcement coincides with FedEx reporting a 23 percent increase in net profit to US$616 million on revenue of US$11.9 billion in its second quarter ending November 30. Operating income was up 22 percent to US$1.01 billion compared to the same period last year.
Earlier this month, subsidiary Genco Marketplace said it had liquidated more than US$2.5 billion in secondary merchandise in 2014. The company partners with America's largest retailers to remarket returned and excess electronics, hardware and clothing to off-price retailers, online sellers, liquidators and flea marketers.
CEO Laurie Barkman commented: "Secondary merchandise has been increasingly embraced by consumers in recent years. We are seeing more and more sold during the holidays as gifts. "
FedEx said the purchase of St. Petersburg-based Bongo International will enhance its portfolio of global e-commerce solutions. Bongo enables global consumers and businesses to purchase on-line using a U.S. address for delivery to more than 200 countries worldwide.
The company, which will become a subsidiary of FedEx Trade Networks, has developed e-commerce technology that includes duty and tax calculations; export compliance management; HS classification; currency conversions; international payment options inclusive of language translation; shopping cart management and fraud protection. Bongo also takes pictures of each item ordered (right) to enable consumers to verify they're receiving what they ordered prior to being charged shipping fees, duties and taxes.
"Our knowledge and experience within the evolving cross border enablement environment, as well as our customer-centric culture, is a perfect fit with FedEx. We're excited about joining the FedEx family," declared Craig Turnbull, Bongo International co-founder and CEO.