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Maersk to acquire Hong Kong’s LF Logistics in US$3.6Bn deal
Container shipping giant AP Moller-Maersk reached an agreement to acquire Hong Kong-based LF Logistics for US$3.6Bn
With the move, Maersk is looking to acquisitions to expand beyond ocean freight into inland logistics, aiming to acquire a bigger slice of the lucrative market in goods moving between the US and Asia by providing end-to-end services.
A statement from the company said LF Logistics offers premium capabilities within omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region and is a prominent partner for companies seeking to grow their business.
Maersk chief executive Soren Skou called the acquisition an important and strategic milestone in the company’s quest to become a global integrator of container logistics.
LF Logistics specialises in business-to-business (B2B) and business-to-customer (B2C) distribution within retail, wholesale and e-commerce. Acquiring its properties, existing customer base and services will allow Maersk to expand within Asia-Pacific and globally.
Maersk will add 223 warehouses to its existing portfolio, bringing its total number of facilities to 549 globally, spread across a total of 9.5M m2.
Mr Skou said, “With the acquisition of LF Logistics, we add critical capabilities in Asia Pacific to support our customers’ long-term growth in Asia Pacific as well as capabilities and technology we can scale in our contract logistics business globally.”
Maersk chief executive of ocean and logistics Vincent Clerc added, “LF Logistics has built an unparalleled track record of executing a superior omni-channel strategy for customers, which is a unique position we can use to build and operate fulfilment to customers across our network.”
Over the last two years, Maersk has acquired US-based warehousing specialist Performance Team, pan-European customs service specialist KGH, and HUUB, a Portuguese cloud-based logistics start-up that specialises in B2C warehousing for the fashion industry.
LF Logistics is privately owned by Li & Fung (78.3%) and Temasek Holdings (21.7%) but run as a standalone company separate from Li & Fung. The company has nearly 10,000 employees and operates 223 warehouses and fulfilment centres in 14 countries totalling 2.7M m2 and reported revenue of nearly US$1.3Bn in 2020.
The transaction is subject to regulatory approvals and is expected to close in 2022.
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