McGraw-Hill Completes Logistics Division Sale to FedEx

The McGraw-Hill Cos. Tuesday completed its sale of Tower International Group, its logistics subsidiary, to FedEx Corp.

Terms weren't disclosed.

"Divesting this business is consistent with our strategy of directing resources where we can achieve the size and scale necessary for significant financial growth and market leadership," Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Cos., said.

The sale was announced last month. FedEx said then that the acquisition would be the first step in the creation of a new FedEx company to extend global trade services. The new company, FedEx Trade Networks Inc., will provide:

• Full customs-brokerage services.
• Trade consulting and information technology, including integrated regulatory compliance for imports and exports, and preparing and archiving documents.
• Software to help move shipments quickly through customs.
• Transportation and logistics services.

McGraw-Hill said the sale would allow the company to focus on its information and media-services businesses, with the goal of expanding its global reach, growing into the business-to-business market and moving information the company offers to the World Wide Web.

Tower Group International has 1,600 employees in 63 North American. It is a leading provider of international-logistics services, with a specialty in customs brokerage, international-freight forwarding, transportation, warehousing and national distribution.