FedEx purchases Parcel Direct

Memphis-based FedEx Corp. has wrapped up its $120-million acquisition of national parcel consolidator New Berlin, WI-based Parcel Direct from Quad/Graphics.

FedEx said it plans to merge Parcel Direct into its FedEx Ground subsidiary, with a specific focus on the online retail and catalog markets that ship low-weight, less-time-sensitive goods.

Ward Strang, a 16-year veteran of FedEx Ground who headed up formation of the company's dedicated residential ground service, FedEx Home Delivery, will become Parcel Direct's president & CEO.

"This acquisition adds another proven solution to our portfolio and offers customers even greater choice for residential shipping," said Daniel Sullivan, president & CEO of FedEx Ground. "I'm confident that we can build on the successful operating model put in place by Parcel Direct to quickly meet increasing customer demand."