Maersk to acquire Asian fulfillment company LF Logistics for $3.6bn
Danish shipping firm A. P. Moller – Maersk (Maersk) has agreed to acquire LF Logistics, a Hong Kong-based fulfillment company, from Li & Fung and Temasek Holdings for $3.6 billion.
LF Logistics, which operates a Pan-Asian network, serves as the supply chain partner for firms looking to expand in the Asia-Pacific region. Established in 1999, the contract logistics solutions provider offers B2B and B2C distribution solutions within wholesale, retail, and e-commerce.
It has a workforce of around 10,000 and has 223 warehouses and fulfilment centres spread over 14 countries with a total area of 2.7 million square meters. In 2020, LF Logistics registered revenue of nearly $1.3 billion.
The company has two business units, which include In-Country Logistics (ICL) and Global Freight Management (GFM).
Following the acquisition, Maersk will take the total number of its facilities around the world to 549, which will span across a total of 9.5 million square meters.
Maersk to acquire Hong Kong-based fulfilment company LF Logistics for $3.6bn. Photo courtesy of A.P. Moller – Maersk.
Vincent Clerc — CEO of Maersk Ocean and Logistics said: “With this move, we will boost our warehousing and distribution offering and respond to the rapidly growing needs of our customers for contract logistics.
“Guided by a customer-centric culture and well-executed operations, 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.”
As part of the deal, Maersk will forge a strategic partnership with Li & Fung for developing logistics solutions.
Joseph Phi — CEO of Li & Fung and LF Logistics CEO said: “We recognize that for LF Logistics to be a global leader in the industry, achieving scale is of paramount importance.
“Maersk provides the ideal fit for our people and our customers. It has a substantial presence around the world and will utilize LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfillment offering globally.
“This is testament to the strength of our team, our unique operations-centric culture, and superb growth potential. 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.”
The deal, which is subject to regulatory approvals, is likely to close this year.