Press Releases
Acquisition of Tower Group International marks first step
MEMPHIS, Tenn., (February 17, 2000) - FedEx Corp. is creating an
independent subsidiary to serve the ever-growing number of customers
doing business globally.
The new company, FedEx Trade Networks Inc., will pursue a business
and service strategy designed to assist customers with their plans
for international trade and transportation. Once fully in place,
FedEx Trade Networks will offer unmatched trade services that will
greatly help customers of all sizes solve the intricacies of shipping
goods globally by providing:
- Full-service customs brokerage, which involves entry filing
and release services, assessing and advancing customs duties and
fees, and filing declarations for items shipped via express air
and truck networks.
- Trade consulting and information technology, including fully
integrated regulatory compliance for imports and exports, document
preparation and archiving.
- E-clearance solutions, which will make it possible to quickly
clear more shipments through customs by using advanced e-commerce
programs.
- Transportation and logistics services.
FedEx Trade Networks will strengthen the leadership position FedEx
has long held in global express shipping and technological innovation.
G. Edmond Clark, 45, formerly senior vice president, Operations
Support & Engineering for FedEx Express, will serve as chief executive
officer and president of FedEx Trade Networks. Kenneth R. Masterson,
55, executive vice president, general counsel and secretary for
FedEx Corp., will serve as chairman of the new company and retain
his duties at the holding company.
"FedEx has long been a pioneer in global express transportation
and facilitating world trade; the creation of FedEx Trade Networks
is a logical addition to our service offerings," Clark said. "FedEx
Trade Networks will assist the global business community in planning
and navigating the web of logistical, regulatory and cost challenges
in the international trade arena."
As the foundation for building FedEx Trade Networks, FedEx Corp.
today announced plans to acquire Tower Group International and its
Canadian subsidiary from The McGraw-Hill Companies. Tower Group
International is a leader in the business of international logistics
and trade information technology. The acquisition is subject to
regulatory review in the U.S. and Canada, and it is anticipated
the transaction will close by the end of February.
Tower Group International will become a subsidiary of the new FedEx
Trade Networks. Tower Group International and other FedEx Trade
Networks units will provide services to customers of its sister
FedEx companies as well as other international shippers.
Gerald P. Leary, 46, formerly vice president, Global Trade Services
for FedEx Express, will serve as president and chief operating officer
of Tower.
International shipping is an increasingly vibrant market segment.
With unprecedented global air route authorities to 210 countries,
FedEx Express is the industry leader in reliably serving this growing
market. FedEx connects 90 percent of the world's economic activity
with delivery in one to two business days. More U.S. Customs import
entry transactions are processed through FedEx Express than any
other express operator.
"The addition of Tower Group International to the FedEx family
creates a strong combination that will broaden our e-clearance and
supply chain solutions portfolio," Leary said. "FedEx Express has
contracted with Tower Group International on customs issues since
1994. We welcome this progressive company as a full-fledged member
of the FedEx family."
Tower Group International has 1,600 employees and 63 offices throughout
North America. The company also specializes in warehousing and national
distribution, duty drawback, trade consulting, cargo insurance,
and public and private seminars. Tower Group International reported
revenues of $116.3 million for the year ended December 31, 1999.
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