January 5, 2004—FedEx Corporation and Clayton, Dubilier & Rice, Inc., jointly announced an agreement for FedEx to acquire Kinko’s for $2.4 billion, payable in cash.
“The FedEx and Kinko’s combination will substantially increase our retail presence worldwide and will enable both companies to take advantage of growth opportunities in the fast-moving digital economy,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp.
Privately-held Kinko’s operates approximately 1,200 stores worldwide and estimates annual revenue of about $2 billion for its year ending December 31. Funds managed by Clayton, Dubilier & Rice (CD&R), a global private equity investment firm, own approximately 75 percent of Kinko’s outstanding shares.
The transaction is expected to close in the first calendar quarter of 2004.
