FedEx said the acquisition will gives its FedEx Express business unit a more robust domestic ground network and added capabilities in India.

The transaction is subject to customary closing conditions and will close in its third fiscal quarter, which ends February 2011.

A privately held company, AFL Pvt Ltd was founded in 1945 and offers a range of distribution and logistics services through a network across India.

The acquisition includes the purchase of AFL Logistics and Distribution, and AFL WiZ Express.

Commenting on the agreement, Michael L. Ducker, COO of FedEx Express said: “The acquisition supports our long-term strategy to grow our international business and better serve our customers seeking to expand or enter the Indian market.”

Cyrus Guzder, Chairman of AFL, added: “This transaction provides AFL with an opportunity to offer its customers an enhanced level of service, new service offerings and the adoption of global best practices in its core businesses of air express delivery and ground distribution.”

He went onto explain that AFL’s network and logistics infrastructure will “enable FedEx to deepen its penetration of the Indian market”.

Once the acquisition has closed, Guzder will assume the role of executive advisor to FedEx.

Edited by Darrel Moore

For more information, visit the FedEx Express newsroom.