Fed-Ex in E25m deal
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• Rapidly-expanding Federal Express has arranged a 225 million 'revolving credit' finance package — a form of overdraft agreement — with two major high street banks as part of its UK expansion plan, and intends to set up six new distribution centres by the end of the financial year.
FedEx has also arranged a leasing deal, worth around 215 million, for the acquisition of new vehicles.
The latest funding is coming from Midland Bank and National Westminster Bank, while the leasing package has been arranged with Midland Bank subsidiary Forward Trust Group. The loans are being guaranteed by FedEx's American parent company, which wants its UK subsidiary to operate autonomously by raising its own capital.
FedEx's expansion recently included new distribution depots in Perth and Edinburgh, and another will open soon in Croydon. A site has also been acquired in North London and the company says that it is looking at other locations, particularly in the Midlands.
FedEx runs 1,800 vehicles in its two operating sub sidiaries: parcels carrier Federal Express Priority Services, and Federal Express Systemline, which offers contract distribution.
Although most of its existing fleet has been bought outright, the company is now looking at leasing, and 200 trucks are expected to be added to the FedEx fleet using this method by the end of March next year. Federal Express Systemline says that its contract distribution business is expanding fast. Among customers are Volvo, Saab and Land Rover, which