FedEx Corp.’s decision to acquire O’Hara-based logistics company Genco gives the shipping giant a foothold in the reverse logistics field, where Genco is an industry leader.
Genco was founded as the H. Shear Trucking Co. in 1898. Herb Shear, the third generation of the founding family, is the private company’s executive chairman and will retire once the acquisition is complete.
“With similar corporate cultures, shared values and unwavering focus on developing world-class logistics solutions, FedEx and Genco are a great fit,” Mr. Shear said in a statement.
Financial terms of the deal were not disclosed during the Monday announcement.
Genco merged with ATC Technology in 2010, bringing with it Genco’s current CEO, Todd Peters, who will continue to be part of the operation going forward.
Genco says its 300 customers include Fortune 500 consumer and industrial manufacturers, retailers, technology companies, healthcare services providers and U.S. government agencies.
The deal is subject to regulatory approval, but Genco spokesman Ryan Kelly said Tuesday it was expected to be completed in the first quarter. It has not been determined whether the Genco name would be retained, Mr. Kelly said.
“The acquisition of Genco will transform our global portfolio through the addition of new best in class supply chain management services,” Frederick W. Smith, chairman and CEO of Memphis-based FedEx Corp., said in a statement.
“As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services.”
Genco has about 11,000 employees in the U.S., Canada, Mexico and Bahrain, Mr. Kelly said, with about 400 of them in the Pittsburgh area.
According to the news release announcing the acquisition, Genco generates about $1.6 billion in annual revenue.
FedEx Ground, based in Moon, has about 3,000 local employees.
“This is absolutely an acquisition of growth,” Mr. Kelly added.
FedEx is scheduled to release its second quarter results on Wednesday. Shares were down 1.14 percent to $174.26 at the close of markets Tuesday.
Kim Lyons: klyons@post-gazette.com or 412-263-1241.
First Published: December 16, 2014, 1:50 a.m.
Updated: December 17, 2014, 2:42 a.m.
