Published by Hispanic Business

FedEx Express will bulk up in fast-growing Brazil by buying transportation and logistics company Rapidão Cometa, FedEx Corp. announced Tuesday.

It’s the third foreign acquisition by FedEx since early April, coming on the heels of plans to buy two European companies, and it follows the addition last summer of Mexico’s MultiPack.

“They continue to do strategic tuck-ins,” said analyst Donald Broughton of Avondale Partners. “This is in line with that ongoing strategy, as they increase not only the depth, but the breadth of their penetration in the world express market.”

The buying spree began after rival UPS announced a blockbuster $6.77 billion deal to buy TNT Express, but Broughton sees it as unrelated. He believes FedEx would be buying small companies even if UPS hadn’t moved to buy Europe’s second-largest delivery company, behind DHL.

FedEx said the transaction should close in the August-September quarter, subject to customary closing conditions. A purchase price wasn’t disclosed.

Consultant Satish Jindel of SJ Consulting said it’s hard to assess the transaction without knowing the price.

Brazil’s economic expansion slowed to barely 3 percent in 2011 from 7.5 percent in 2010. Rapidão Cometa “obviously grew during that period. If that growth got factored into the purchase price, my only comment is I hope they haven’t overpaid for acquiring this company.”

Jindel also pointed out the company has more team members than FedEx’s current total in the region. “They’re more than doubling the size of the employees.

Rapidão Cometa Logistica e Transportes S.A. operates a domestic transportation and logistics network with about 9,000 team members and 770 vehicles and trailers. It has been a FedEx-authorized representative in Brazil for 11 years and makes about 12 million deliveries a year.

Juan N. Cento, president, FedEx Express, Latin America and Caribbean, said, “Brazil is a market with tremendous growth potential — both in the overall economy, as well as in the logistics sector. The acquisition of Rapidão Cometa — one of the largest logistics solutions providers in Brazil — is in line with our long-term strategy to grow our Latin American business and better serve our customers seeking to enter or expand their businesses in the Brazilian market.”