Copenhagen, Denmark-based A.P. Moeller Maersk, an integrated container logistics services provider said today it has completed its acquisition of Hong Kong-based contract logistics services provider LF Logistics.
The transaction price was US$3.6 billion, according to Maersk. Maersk initially announce it planned to acquire LF Logistics in December 2021.
Maersk said that LF Logistics provides shippers with premium capabilities within omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region.
Maersk CEO Soren Skou said last December that the acquisition of LF Logistics is an important and truly strategic milestone Maersk’s journey to become the global integrator of container logistics; a global logistics company that provide digitally enabled end-to-end logistics solutions based on control of critical assets.
“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,” said Skou.
Upon completion of the transaction, Maersk said it will add 223 warehouses to its existing portfolio, which will bring its total number of global facilities to 549, across a cumulative 9.5 million square-meters.
What’s more, Maersk added that LF Logistics employs 10,000 staffers, operates an extensive Pan-Asian network, and is “the supply chain partner of choice for companies looking to grow in the Asia-Pacific region.” And it also noted that LF Logistics specializes in B2B and B2C distribution solutions within retail, wholesale, and e-commerce and has a track record of deep customer relations and operational excellence, which is a strong base for Maersk to expand within Asia-Pacific and globally.
Another strong synergy identified by Maersk is LF Logistics’ Asia-wide footprint and strong fulfillment offerings, coupled with Maersk’s strategic objective to support the supply chain needs of its customers, from end-to-end as a trusted partner in control of assets.
“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. The unique and complementary strengths of the two companies will allow our customers to achieve sustainable competitive advantage and our people to attain their full potential. We look forward to a seamless transition experience for both our colleagues and customers,” said Joseph Phi, Group CEO of Li & Fung and CEO of LF Logistics, in a statement.
This acquisition is the most recent one in series made in recent years by Maersk. In May, it completed its US$1.68 billion acquisition of Pilot Freight Services.
