FedEx Corp. and Clayton, Dubilier Rice Inc., have 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. "Our two companies share a similar background, culture and customer focus, and that common ground is extremely important as we prepare for future growth and success."
Privately held Kinko's operates about 1,200 stores worldwide and estimates annual revenue of about $2 billion for its year ending Dec. 31. Funds managed by Clayton, Dubilier Rice, a global private equity investment firm, own about 75% of Kinko's outstanding shares.
"Kinko's successful transformation from traditional copy center operator into a global, digitally-connected provider of an array of valuable business services reflects the outstanding efforts of the company's exceptionally talented leadership team and team members," said George W. Tamke, chairman of Kinko's and a CD operating partner.
The transaction is expected to close in the first calendar quarter of 2004.