CMA CGM to boost logistics footprint with latest $3 billion deal
French shipping major CMA CGM Group has signed a purchase agreement to acquire most of Ingram Micro’s Commerce & Lifecycle Services activities (CLS), including the company’s technology logistics businesses in North America, Europe, Latin America and Asia-Pacific.
The Ingram Micro CLS business being acquired specializes in eCommerce contract logistics and omnichannel fulfillment. Ingram Micro’s CLS business will complement CMA CGM’s subsidiary CEVA Logistics and accelerate its growth in key market segments, such as technology, retail and fashion.
The combination of CEVA Logistics and Ingram Micro CLS activities will create the fourth-largest global provider of contract logistics services, according to the company. Michiel Alting von Geusau, currently Executive Vice President, and President of Global Commerce & Life Cycle Services for Ingram Micro, will continue to lead the business within CEVA Logistics.
Furthermore, the transaction includes Shipwire, a cloud-based logistics technology platform. The platform provides flexible eCommerce logistics solutions for small and medium-sized companies. Shipwire will be able to access CMA CGM’s client base of more than 100,000 customers and CEVA’s warehouses to accelerate its development and extend its global footprint.
Under the agreement, the remaining portions of the existing CLS business will be retained by Ingram Micro, CMA CGM noted in its statement.
The CMA CGM Group intends to fund this acquisition worth $3 billion from its own resources.The closing of this transaction is subject to customary conditions, including regulatory approvals by relevant authorities. The transaction is expected to close during the first half of 2022.
“After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world’s Top 4 in contract logistics. Its position will be significantly strengthened in the U.S. and European markets, enhancing its ability to seize the opportunities offered by the boom of eCommerce,” Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said.
This acquisition is part of the CMA CGM Group’s strategy to build and develop extensive transportation and logistics solutions in support of its customers’ supply chains. Recently, the French giant agreed to buy a majority stake in Fenix Marine Services (FMS), one of the largest terminals in the Port of Los Angeles that provides container handling services to shipping lines.
Due to its latest investments, the firm has also delivered strong financial performance, adding 62 ships to support the growth of the transport market in the coming years.