A.P. Moller – Maersk announced a US$3.6-billion deal to acquire LF Logistics, a Hong Kong-based contract logistics company with capabilities in omnichannel fulfilment services, e-commerce and inland transport in the Asia-Pacific region.
LF Logistics operates an extensive pan-Asian network. The company specialises in B2B and B2C distribution solutions within retail, wholesale, and e-commerce.
Maersk CEO Søren Skou said the acquisition would add critical and scalable capabilities and technologies in the Asia-Pacific region.
“The acquisition of LF Logistics is an important and truly strategic milestone on our 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,” he said.
A statement from Maersk on the transaction said LF Logistics, with its Asia-Pacific-wide footprint and fulfilment capabilities, matches Maersk’s strategic intent to support customers’ supply chain needs end-to-end as a trusted partner in control of the assets.
With the intended 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.
Maersk CEO of ocean and logistics Vincent Clerc 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.”
LF Logistics CEO Joseph Phi said for the company, 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 utilise LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfillment offering globally,” Mr Phi said.
“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.”
LF Logistics employs 10,000 people and has 223 warehouses and fulfilment centres in 14 countries totalling 2.7 million square meters. In the full-year 2020 LF Logistics reported a revenue of around US$1.3bn.
