In a bid to strengthen its Freight Forwarding and Brokerage capabilities in the Latin American market, FedEx (FDX - Free Report) agreed to acquire Colombian freight forwarder, Cargex, and its affiliate Agencias de Aduanas Aduanamos S.A. Nivel 2.
Headquartered in Bogota, Cargex has a vast experience in the field of export management of perishable goods. Meanwhile, Agencias de Aduanas Aduanamo specializes in offering customs brokerage services.
Notably, the terms of the agreement were kept under wraps. Anticipated to close later in 2019, this deal is subjected to customary closing conditions and a Colombian regulatory filing.
Following the closure of the deal, Cargex would function as a subsidiary of the FedEx Logistics’ (formerly known as FedEx Trade Networks) operating segment. The FedEx Logistics unit offers services pertaining to customs brokerage, and global ocean and air freight forwarding through FedEx Trade Networks Transport & Brokerage. Results of the FedEx Logistics unit are reported under “Corporate, other and eliminations.”
The decision to acquire Cargex further highlights FedEx’s commitment toward expanding its footprint in the promising Latin American market. Notably, FedEx Express, the major revenue-generating unit of the company, recently announced a roundtrip Colombia-to-Miami flight to enhance connectivity with the Latin American market.
Zacks Rank & Key Picks
FedEx carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Zacks Transportation sector are Copa Holdings (CPA - Free Report) , Delta Air Lines (DAL - Free Report) and GATX Corporation (GATX - Free Report) . While Copa Holdings sports a Zacks Rank #1 (Strong Buy), Delta and GATX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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In a bid to strengthen its Freight Forwarding and Brokerage capabilities in the Latin American market, FedEx (FDX - Free Report) agreed to acquire Colombian freight forwarder, Cargex, and its affiliate Agencias de Aduanas Aduanamos S.A. Nivel 2.
Headquartered in Bogota, Cargex has a vast experience in the field of export management of perishable goods. Meanwhile, Agencias de Aduanas Aduanamo specializes in offering customs brokerage services.
Notably, the terms of the agreement were kept under wraps. Anticipated to close later in 2019, this deal is subjected to customary closing conditions and a Colombian regulatory filing.
Following the closure of the deal, Cargex would function as a subsidiary of the FedEx Logistics’ (formerly known as FedEx Trade Networks) operating segment. The FedEx Logistics unit offers services pertaining to customs brokerage, and global ocean and air freight forwarding through FedEx Trade Networks Transport & Brokerage. Results of the FedEx Logistics unit are reported under “Corporate, other and eliminations.”
The decision to acquire Cargex further highlights FedEx’s commitment toward expanding its footprint in the promising Latin American market. Notably, FedEx Express, the major revenue-generating unit of the company, recently announced a roundtrip Colombia-to-Miami flight to enhance connectivity with the Latin American market.
Zacks Rank & Key Picks
FedEx carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Zacks Transportation sector are Copa Holdings (CPA - Free Report) , Delta Air Lines (DAL - Free Report) and GATX Corporation (GATX - Free Report) . While Copa Holdings sports a Zacks Rank #1 (Strong Buy), Delta and GATX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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