Shipping giant Maersk has agreed to buy Hong Kong-listed LF Logistics for $3.6bn in cash.
LF Logistics is jointly owned with Li & Fund and Temasek, the Singapore sovereign wealth fund and is a logistics services provider, offering both contract logistics services across Asia and freight management services globally.
Maersk said on Wednesday that the acquisition, which is due to close next year, is expected to be accretive to results in year two. It said the deal was “transformational” and would enable Maersk to serve Asian consumers directly, a market where its customers are looking to grow.
The acquisition will add 223 warehouses to the company’s existing portfolio, bringing the total to 549 facilities globally, creating a global fulfillment network.
Vincent Clerc, chief executive officer of Ocean & Logistics at Maersk, said: “We are excited, and we look forward to strengthening our global logistics business and welcoming 10,000 new logistics experts from a customer-centric culture with well-executed operations. With the intended acquisition of LF Logistics, we will bring in an extensive warehousing network covering the fast-growing Asia-Pacific markets; all underpinned by a best-in-class operational and technology platform which we can scale globally across our network.
“We are impressed by the way LF Logistics has built a track record of executing a superior omni-channel strategy for customers, which is a strength we can use to build and operate fulfilment to customers across our network.”
