Global express cargo major FedEx Corporation announced on Thursday that its FedEx Express unit has signed an agreement to acquire its Indian service provider, Prakash Air Freight Pvt Ltd (PAFEX) for $30 million in cash.
The transaction, which is subject to customary conditions including Indian government approval, will further extend the FedEx leadership position in the global express industry with a wholly-owned operation in one of the world's fastest growing markets, a FedEx statement said.
PAFEX began domestic express operations in 1986 and has been FedEx's service provider in India since 2002. FedEx has been in India since 1984.
"This acquisition will solidify the FedEx's leadership position within India. As a valued and trusted global service participant, bringing PAFEX operations within the company is the logical next step in the ongoing development of our Indian business," said Robert W Elliott, FedEx Express's president for Europe, Middle East, Africa and the Indian subcontinent.
JP Morgan acted as financial advisor to FedEx.