Maersk Accomplishes a $3.6 Billion Takeover of LF Logistics
A.P. Moller-Maersk (Maersk) stated that it has successfully acquired LF Logistics, a contract logistics firm based in Hong Kong with premier capabilities in omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region. An official statement from Maersk revealed that LF Logistics will be rebranded to Maersk.
Maersk’s strategic intent to service customers’ end-to-end supply chain needs will be achieved through LF Logistics’ extensive footprint across Asia-Pacific and industry-leading fulfilment capabilities.
“For more than two decades, LF Logistics has had an admirable history of profitable expansion in the area. Maersk’s extensive worldwide network offers the perfect foundation for our upcoming phase of organisational growth and development. Our customers will be able to gain a sustainable competitive edge, and our people will be able to reach their full potential thanks to the distinct and complementary qualities of the two businesses. “We look forward to a seamless transition experience for both our colleagues and customers,” said Joseph Phi, Group CEO of Li & Fung and CEO of LF Logistics.
“I am pleased to welcome LF Logistics to Maersk. Historically, our focus has been on origin logistics or exports out of Asia, but now the region has transitioned into a large consumer market in its own right. Going forward, Maersk and LF Logistics will become one team, providing strong omnichannel fulfilment capabilities that will enable exports into Asia and also connect us with the Asian consumer directly,” said Ditlev Blicher, Regional Managing Director of Asia Pacific at A.P. Moller – Maersk.
The value of the business is US$3.6 billion on an enterprise value basis.
As part of the strategic sale of its LF Logistics business, the parent company of Li & Fung has formed a strategic partnership with Maersk that will enable both companies to utilise their respective resources and global networks to create a comprehensive range of end-to-end global supply chain services. Additionally, it will acquire and continue to build the Global Freight Services business following the completion of the transaction.