Aramex
 | |
| Company type | Public (DFM: ARMX) |
|---|---|
| Industry | Transportation and Logistics |
| Founded | 1982 |
| Headquarters | Amman, Jordan |
Key people | Fadi Ghandour (Founder and CEO) |
| Products | International, Express, Domestic Express, Freight Forwarding, Logistics, Shop & Ship, Catalog Services |
| Revenue | $600 million (2010)[1] |
| Website | www.aramex.com |
Aramex (Arabic: ارامكس ’arāmaks) is a global transportation and logistics services company providing a variety of express, logistics, freight forwarding and domestic distribution services. The company was established in 1982 and is headquartered in Amman, Jordan. Aramex also provides a number of retail services including mail-order catalog services and mail forwarding services.
History
Aramex was founded by Fadi Ghandour in 1982, where its name was acronym of "ARab AMerican EXpress" before its brand name Aramex. In 1982 Mr. Ghandour began operations as an express wholesaler to North American express delivery companies such as FedEx, Purolator, Burlington Northern, Emery, and Airborne Express with DHL as its main competitor in the region. In 1990, Aramex co-founded the Overseas Express Carriers (OEC) network, along with Airborne Express, an alliance of independent global express companies that functioned as a worldwide delivery network for its members to compete with larger companies.[2]
In 1997, Aramex was listed on the NASDAQ and was the first international company in the region to do so. In 2002, as Aramex was celebrating its 20th anniversary, it was approached by Abraaj Capital and consequently Aramex decided to delist from the NASDAQ. The Company moved to private ownership after being acquired in a leveraged management buyout by Aramex CEO and Co-Founder Fadi Ghandour.[3]
In 2003, DHL acquired Airborne Express, Aramex’s main United States partner. This resulted in Airborne Express exiting the Airborne Alliance. In the same year, Aramex took over the alliance and co-founded the Global Distribution Alliance (GDA), a global alliance of 40 express companies with combined revenues of $7.5 billion. Aramex is chairing the alliance which uses a shipment management system developed by the company.[4][5][6]
After deciding to list on the Dubai stock market, the company's initial public offering made available a total of about 550 million shares to the public at a price of Dh1 per share.[7]
As part of its expansion plans, Aramex concluded a series of acquisitions, including Priority Airfreight, InfoFort, Freight Professionals and TwoWay-Vanguard.[8][9][10]
World-renowned writer and columnist Thomas L. Friedman used Aramex in his book The World Is Flat as an example of companies that benefit from what he calls the flattening of the world. The flattening of the world is the leveling of the economic field and the destruction of “barriers to entry,” opening the door wide for an individual or a company anywhere in the world to collaborate or compete globally.[11][12]
2011 was a strong year for Aramex, marked by series of strategic acquisitions: OneWorld Courier and In-Time Couriers in Kenya, Berco Express in South Africa, and Irish Aquaship Agencies. A joint venture with SinoAir in China was also formed.[13]
References
- ^ Harvard Business Review 03/11 The CEO of Aramex On Turning a Failed Sale Into a Huge Opportunity, 43-47
- ^ "Shuaa Capital Research" (PDF).
- ^ "Abraaj Capital".
- ^ Friedman, Thomas. The World is Flat.
- ^ "Abraaj Capital".
- ^ "Global Distribution Alliance".
- ^ "AIL board of directors approves the acquisition of Aramex from Abraaj".
- ^ "InfoFort".
- ^ "Priority Airfreight".
- ^ "Freight Professionals".
- ^ "cceia.org".
- ^ "WikiSummaries".
- ^ ""Care by Air" Initiative Supported by Aramex PJSC".