MAERSK has completed its acquisition of LF Logistics, a contract logistics company with capabilities across e-commerce and inland transport in the Asia Pacific region.

Having acquired the Hong Kong-based company, Maersk will add 223 warehouses to its existing portfolio, bringing the total number of warehouse facilities to 549 globally, spread across a total of 9.5 million square kilometres.

Ditlev Blicher, Maersk’s regional managing director of Asia Pacific, said Maersk, in Asia, has historically been primarily focused on ocean transportation out of Asia and related logistics services.

“Transporting and managing goods manufactured in Asia for consumer markets in the west and beyond,” Mr Blicher said.

“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.”

According to Maersk, LF Logistics has an Asia-Pacific-wide footprint, operates an extensive pan-Asian network, and has 10,000 employees.

“LF Logistics has an enviable track record of profitable growth in the region for more than two decades,” LF Logistics CEO Joseph Phi said.

“Maersk’s global presence provides an ideal platform for our next phase of organisational 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.”

Maersk said the value of the transaction is US$3.6 billion (enterprise value) post-IFRS 16 lease liabilities.

Additionally, an earn-out with a total value of up to US$160 million related to future financial performance has been agreed as part of the transaction.

And, as part of the transaction to acquire LF Logistics, Maersk has also entered a strategic partnership with parent company Li & Fung to develop a range of end-to-end global supply chain services.

Following separate regulatory approvals, Li & Fung is expected to retain and continue to build the carved-out GFM business.