Seattle, USA – August 7, 2015: A view of the industrial shipping docks in the city of Seattle in Washington State, USA. It shows shipping containers mostly bearing the Maersk shipping company logo being unloaded by crane for distribution in the region.
Maersk announced the completion of its acquisition of LF Logistics, a Hong Kong-based contract logistics company.
LF Logistics offers capabilities in omnichannel fulfillment services, e-commerce and inland transportation in the Asia-Pacific region.
As a result, LF Logistics will be renamed Maersk.
Following the acquisition, Maersk will add 223 warehouses to the existing portfolio, bringing the total number of facilities to 549 worldwide, spread over a total of 9.5 million square meters.
“I am delighted to welcome LF Logistics to Maersk. Maersk in Asia has historically focused primarily on shipping from Asia and related logistics services,” said Ditlev Blicher, Regional Managing Director for Asia-Pacific at AP Moller – Maersk.
“With the addition of LF Logistics, Maersk gains unique, best-in-class capabilities to serve large and fast-growing consumer markets in Asia. In addition, LF Logistics’ expertise in omnichannel processing positions us well in the global e-commerce market.
LF Logistics employs 10,000 people.
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The company specializes in B2B and B2C distribution solutions in retail, wholesale and e-commerce, and provides a solid foundation for Maersk to grow in Asia Pacific and globally.
“LF Logistics has an enviable track record of profitable growth in the region for over two decades. Maersk’s global presence provides an ideal platform for our next phase of organizational expansion and development,” said Joseph Phi, CEO of Li & Fung Group and CEO of LF Logistics.
The value of the transaction is $3.6 billion (enterprise value) after IFRS 16 lease liabilities. Revenue and EBITDA from the logistics business in the country are expected to more than double by the end of 2026.
As part of the LF Logistics acquisition transaction, Maersk entered into a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services, with Li & Fung focusing on supply chain. upstream supply and Maersk focusing on the downstream supply chain.
Earlier this week, Maersk subsidiary APM Terminals (APMT) announced that it would sell its minority stake in Russian container terminal operator Global Ports Investments PLC (GPI).