Sources inform ''Globes'' that that DHL International GmbH (XETRA:DHL) is acquiring the international delivery business of Flying Cargo Ltd. Flying Cargo, owned by its managing directors Daniel and Avraham Reik, is Israel’s largest delivery and customs agent company. The company’s delivery business is reportedly worth $100 million, suggesting that the acquisition will be made for a similar sum.
Negotiations between DHL and Flying Cargo have been on the back burner for a long time. Following progress in the talks, a delegation of top DHL managers reportedly arrived in Israel this week to finalize a deal. Flying Cargo is expected to convene its employees for a special meeting tonight to announce the likely dramatic changes in the company.
Daniel and Avraham Reik founded Flying Cargo in the early 1980s. It currently has more than 1,000 employees. Since 1992, it has been the exclusive Israeli representative of FedEx Corporation (NYSE:FDX), the world’s largest delivery company.
Flying Cargo also represents the logistics branch of DHL, which operates a DHL Israel for domestic delivery business. Sources believe that DHL will probably later merge Flying Cargo and DHL Israel.
DHL is one of the world’s largest delivery companies. It was founded in the US in 1969 and acquired by Deutsche Post in 2002. The company has 4,000 branches and operates 120,000 sites.
Published by Globes [online], Israel business news - www.globes.co.il - on October 16, 2007
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