FedEx Express has signed an agreement to acquire its Hungarian global service participant, Flying-Cargo Hungary Kft.

The deal is intended to strengthen parent company, FedEx Corp's foothold in Eastern Europe by giving it a wholly-owned operation in one of the region's dynamic markets.

"Since the mid-1990s, Hungary has proven to be one of the standout economies in Eastern Europe, with import and export growth rates of up to seven per cent projected until 2009," said Robert Elliott, president of FedEx Express, Europe, Middle East, Africa and Indian subcontinent.

"Due to increased demand from global customers, opportunities offered by local economic development, and most importantly, the outstanding team on the ground delivering services, the decision to acquire Flying-Cargo was seen as the next logical step in the ongoing development of our business in Hungary."

Privately-held Flying-Cargo has been the FedEx global service participant in Hungary since 2003. All of Flying-Cargo's day-to-day operations are expected to remain unchanged for the foreseeable future, and the company will function as a wholly-owned business of FedEx Express, a company statement said.

"FedEx has expanded our network throughout Eastern Europe with a series of new flights and country openings over the past three years as part of our international growth strategy," said Michael Ducker, president of FedEx Express International. "Central and Eastern Europe, which is growing at nearly three times that of Western Europe, presents significant opportunities for our customers."