As a result of the acquisition of American Freightways, FedEx has created FedEx Freight, a $1.9 billion, less-than-truckload subsidiary that includes American Freightways and its sister operating company, Viking Freight.
FedEx announced on Nov. 13, 2000 that it had agreed to acquire American Freightways.
FedEx Freight is the latest addition to the FedEx family of operating companies that operate independently but compete collectively. Douglas G. Duncan, previously president and CEO of Viking, will head the new company.
Both American Freightways and Viking provide next-day and second-day regional freight delivery. Sales forces for both companies will be trained to cross-sell each other’s services.
American Freightways was acquired in a two-step transaction by FedEx for approximately $1.2 billion (all figures in U.S. dollars), consisting of cash, FedEx common stock and assumed debt. FedEx first acquired 50.1% of American Freightways common stock in a cash tender offer. In the second step, at the close of business on Feb. 9, each remaining outstanding share of American Freightways common stock (other than shares owned by FedEx and dissenters) valued at $28.13 was converted into 0.6639 shares of FedEx Corp. common stock, and American Freightways was merged into FedEx Freight.
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