MEMPHIS, Tenn. – FedEx Corp. on Friday announced a deal to acquire Watkins Motor Lines, a carrier of general commodities, for $780 million in cash.
Watkins, a privately held company based in Lakeland, Fla., will be rebranded FedEx National LTL and operate as a separate network within the FedEx Freight division as part of the deal, which is expected to be complete by next year.
FedEx, based in Memphis, also has agreed to acquire the assets of Watkins’ business in Canada, Watkins Canada Express, which will be rebranded FedEx Freight Canada.
“Since its foundation in 2001, FedEx Freight has continued to grow and strengthen the financial returns of FedEx Corp.,” said Alan Graf Jr., executive vice president and chief financial officer. “We expect Watkins to follow in those footsteps. We believe that Watkins will achieve strong financial returns.”
Company officials say FedEx Freight and Watkins have complementary service offerings with the addition of Watkins’ three-day or more long-haul service to FedEx Freight’s next-day and second-day regional service.
Founded in 1932, Watkins Motor Lines has a work force of about 10,000. It has 139 locations in 42 states and Puerto Rico and operates more than 3,400 late-model city and long-haul tractors and over 10,200 trailers.
FedEx company officials said they do not expect any work force reductions at either company as a result of the acquisition.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
