Maersk Completes $3.6 Billion Acquisition of LF Logistics
Maersk has announced the completion of its acquisition of LF Logistics, a Hong Kong-based contract logistics company.
LF Logistics offers capabilities within omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region.
As consequence, LF Logistics will be rebranded to Maersk.
Following the acquisition, Maersk will add 223 warehouses to the existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5 million square meters.
“I am thrilled to welcome LF Logistics to Maersk. Maersk in Asia has historically been primarily focused on ocean transportation out of Asia and related logistics services,” said Ditlev Blicher, Regional Managing Director of Asia Pacific at A.P. Moller – Maersk.
“With the addition of LF Logistics, Maersk gains unique and best in class capabilities to servicing the important and fast-growing consumer markets in Asia. Furthermore, LF Logistics expertise in omnichannel fulfilment positions us well with the global e-commerce market.”
LF Logistics employs 10,000 people.
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The firm specialises in B2B and B2C distribution solutions within retail, wholesale, and e-commerce, and a strong base for Maersk to expand within Asia-Pacific and globally.
“LF Logistics has an enviable track record of profitable growth in the region for more than two decades. Maersk’s global presence provides an ideal platform for our next phase of organizational expansion and development,” said Joseph Phi, Group CEO of Li & Fung and CEO of LF Logistics.
The value of the transaction is $3.6 billion (enterprise value) post-IFRS 16 lease liabilities. It is expected that revenue and EBITDA in the in-country logistics business will more than double by the end of 2026.
As part of the transaction to acquire LF Logistics, Maersk has entered a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services with Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain.
Earlier this week, APM Terminals (APMT), part Maersk, announced it will divest its minority stake in Russian container terminal operator Global Ports Investments PLC (GPI).
Container xChange Asia Forecaster April 2023
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