FedEx Corp. (NYSE:FDX) has committed to participate in a consortium that is moving to acquire Poland-based parcel locker and European home delivery provider InPost, according to reporting from Bernstein SocGen Group. The proposed transaction places InPost's valuation at €7.8 billion and is structured to take the company private.
The consortium is led by private equity firm Advent alongside FedEx. Under the current deal framework, Advent and FedEx would each hold a 37% stake after closing. An entity backed by InPost's CEO would retain 16%, and European investment fund PPF would hold the remaining 10%.
FedEx's capital commitment to the group is reported at $2.6 billion. It has not been disclosed whether FedEx will fund its portion with available cash or through new borrowing. The consortium as a whole plans to layer the acquisition with €4.9 billion of debt, some of which is intended to refinance existing liabilities on InPost's balance sheet.
Bernstein analyst David Vernon reiterated an Outperform rating on FedEx and left a $427.00 price target intact in the wake of the consortium news. That price target implies potential upside relative to FedEx's stated trading price of $364.60. At the same time, InvestingPro data referenced alongside the update indicates the stock may be trading above its Fair Value and that its relative strength index (RSI) is consistent with overbought conditions.
The offer for InPost represents a premium to the company's recent trading levels but still trades below the peaks reached following its initial public offering. The transaction remains contingent on shareholder approval, and there is the possibility the final cost could increase or that the deal may not complete.
In parallel with the acquisition news, several analyst and operational developments at FedEx were highlighted. UBS raised its price target to $412 from $314 while maintaining a Buy rating, citing anticipated gains from pricing and cost controls. Bernstein has also upgraded its view on FedEx from Market Perform to Outperform, noting potential margin expansion from approximately 6% toward a 7-9% range.
FedEx has introduced a pair of AI-enabled post-purchase tools, FedEx Tracking+ and FedEx Returns+, developed with parcelLab. The company says these products automate merchant communications, adjust returns policies, and enhance visibility across the returns and tracking experience for customers and merchants.
Operationally, FedEx announced plans to return its grounded MD-11 cargo jets to service by May 31, working with Boeing and the Federal Aviation Administration to ensure safe resumption of operations. Company statements frame these moves alongside the broader strategic adjustments intended to respond to market conditions.
Key points
- FedEx is part of a consortium led by Advent to take InPost private at a €7.8 billion valuation, with FedEx committing $2.6 billion.
- Bernstein reiterated an Outperform rating and a $427 price target; UBS also raised its target to $412 and maintained a Buy rating.
- The deal will be financed with substantial leverage - €4.9 billion of debt is planned for the acquisition - and remains subject to shareholder approval.
Risks and uncertainties
- The transaction is contingent on shareholder approval and could become more costly or fail to close.
- Funding for FedEx's $2.6 billion commitment has not been specified - whether via cash or new debt - introducing financing uncertainty.
- Leverage on the deal and InPost's post-IPO valuation gap introduce execution and market risk for the parties and credit markets.
These developments highlight strategic growth and capital allocation choices by FedEx while underscoring approval, financing, and market-timing risks for investors and market participants in logistics, parcel delivery, and credit markets.