Clayton, Dubilier & Rice sells Kinko’s to FedEx

FedEx Corporation has signed an agreement to acquire Clayton, Dubilier & Rice (CD&R) portfolio company Kinko’s for $2.4bn in cash. CD&R paid $214m for a 29.6% interest in the document solution and business services provider in 1996. In January 2003 the group acquired an additional 43.4% stake for $175m increasing its holding to 73%.

Kinko’s operates around 1,200 stores worldwide and estimates annual revenue of around $2bn for the year ending 31 December 2003. Over the years, CD&R has dedicated a combination of operating and financial resources to improve Kinko’s growth prospects and achieve higher levels of profitability.

George Tamke, chairman of Kinko’s and a CD&R operating partner, said: “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.”

Also serving on Kinko’s board are Donald Gogel, CD&R’s chief executive officer and David Wasserman, one of CD&R’s financial partners who have played an active role with the senior management team to reposition Kinko’s.