Maersk completes acquisition of LF Logistics for $3.6b

Container shipping giant A.P. Moller Maersk has completed its acquisition of e-Commerce supply chain business LF Logistics for a total enterprise value of US$ 3.6 billion (A$ 5.25 billion). 

As a result, the Hong Kong-based company will be rebranded as Maersk.  

LF Logistics is a contract logistics firm that employs 10,000 people, operating an extensive Pan-Asian network.  

The company specialises in B2B and B2C distribution solutions within retail, wholesale, and e-commerce and has a track record of deep customer relations and operational excellence.  

Maersk said that LF Logistics is a strong base for the shipping giant to expand within Asia-Pacific and globally. 

“I am thrilled to welcome LF Logistics to Maersk. Maersk in Asia has historically been primarily focused on ocean transportation out of Asia and related logistics services,” said Ditlev Blicher, Regional Managing Director of Asia Pacific at A.P. Moller – Maersk. 

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

“Furthermore, LF Logistics expertise in omnichannel fulfilment positions us well with the global e-commerce market,” he said.  

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

These services will see Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain. 

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

“Maersk’s global presence provides an ideal platform for our next phase of organisational expansion and development,” Phi said.  

Related: Maersk launches dedicated New Zealand coastal service

“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. We look forward to a seamless transition experience for both our colleagues and customers.” 

Following the acquisition, Maersk will add 223 warehouses to the existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5m square meters.

Source: A.P. Moller – Maersk media release. Content has been edited for style and length.