A.P. Moller – Maersk has reached an agreement to acquire LF Logistics, a Hong Kong-based contract logistics company with capabilities within omnichannel fulfillment services, e-commerce, and inland transport in the Asia-Pacific region.
The value of the transaction is US$3.6 billion, while the acquisition is still subject to regulatory approvals, and is expected to close in the next year. The two companies remain two separate units and thus will do their business as usual, until the completion of the acquisition.
With the intended acquisition of the end-to-end logistics company, Maersk is estimated to add 223 warehouses to the existing portfolio, bringing the total number of its facilities to 549 globally across a total of 9.5 million m2.
“With this move, we will boost our warehousing and distribution offering and respond to the rapidly growing needs of our customers for contract logistics,” stated Vincent Clerc, CEO of Ocean & Logistics at Maersk.
In addition, the Danish logistics group will enter a strategic partnership with the supply chain and logistics solutions company Li & Fung to develop logistics solutions, as part of the agreement to acquire LF Logistics.
With an omnichannel strategy for customers, as well as business-to-business (B2B) and business-to-customer (B2C) distribution solutions within retail, wholesale, and e-commerce, LF Logistics is expected to be a strong base for Maersk to expand within Asia-Pacific, according to a statement.
“With the acquisition of LF Logistics, we add critical capabilities in Asia Pacific to support our customers’ long-term growth in the region as well as capabilities and technology we can scale in our contract logistics business globally,” said Soren Skou, CEO of Maersk.
Joseph Phi, CEO of Li & Fung and CEO of LF Logistics, commented, “Maersk provides the ideal fit for our people and our customers. Together we will deliver a compelling value proposition that allows our people to attain their full potential and our customers to achieve sustainable competitive advantage.”