FEDEX’S TOWER ACQUISITION TO BE PART OF NEW TRADE SERVICES DIVISION

FEDEX’S TOWER ACQUISITION TO BE PART OF NEW TRADE SERVICES DIVISION    FedEx Corp. said today it has acquired Tower Group International and
will use the customs broker to help create a trade services subsidiary.
   The new operation, FedEx Trade Networks, will provide a variety of
transportation and trade services, such as customs brokerage, trade
consulting and information technology, e-commerce programs, and
transportation and logistics services.
   FedEx has appointed G. Edmond Clark chief executive officer and
president of FedEx Trade Networks. Clark served as the company’s senior
vice president of operations support and engineering.
   “FedEx Trade Networks will assist the global business community in
planning and navigating the web of logistical, regulatory and cost
challenges in the international trade arena,” Clark said.
   Kenneth R. Masterson, executive vice president, general counsel and
secretary for FedEx Corp., will serve as chairman of the new company and
retain his duties at the holding company.
   Tower, a $116.3-million Buffalo, N.Y.-based firm, and its Canadian
subsidiary, will be bought from its parent McGraw-Hill Cos. The
acquisition, subject to regulatory review in the United States and Canada,
is expected to close by March 1.
   FedEx said Tower will become a subsidiary of FedEx Trade Networks.
Gerald P. Leary, vice president of FedEx’s Global Trade Services, has been
appointed president and chief operating officer of Tower.
   “The addition of Tower Group International to the FedEx family creates a
strong combination that will broaden our e-clearance and supply chain
solutions portfolio,” Leary said.
  

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