FedEx Will Pay $2.4 Billion To Buy All Kinko's Stores

MEMPHIS–FedEx Corporation recently announced an agreement to acquire Kinko's for $2.4 billion in cash, a transaction expected to close this quarter.

Privately held Kinko's operates approximately 1,200 stores worldwide and estimates annual revenue of about $2 billion. As part of the acquisition, all Kinko's locations worldwide, including more than 400 that operate 24 hours a day, seven days a week, are to offer new or expanded FedEx shipping options.

As the exclusive shipping provider to Kinko's since 1988, FedEx operates full-service, staffed counters in 134 Kinko's stores. This full range of shipping services will now be offered in all Kinko's stores, say FedEx officials, greatly increasing FedEx Ground retail access in the United States and Canada, while improving its retail presence in key international markets.

The Kinko's management team is expected to stay, and company headquarters will remain in Dallas.

"This combination will give customers large and small a single 'go-to' resource for a wider range of business needs," says T. Michael Glenn, FedEx's executive vice president of market development and corporate communications.