Maersk has reached an agreement to acquire LF Logistics, a Hong Kong-based contract logistics company, with premium capabilities within omnichannel fulfillment services, e-commerce, and inland transport in the Asia-Pacific region, the shipping giant has announced.
“The acquisition of LF Logistics is an important and truly strategic milestone on our journey to become the global integrator of container logistics,” says CEO of Maersk Soren Skou
“Maersk wants to be a global logistics company that provides digitally-enabled end-to-end logistics solutions based on control of critical assets. With the acquisition of LF Logistics, we add critical capabilities in the Asia Pacific to support our customer’s long term growth in the Asia Pacific as well as capabilities and technology we can scale in our contract logistics business globally.”
LF Logistics, with its Asia-Pacific wide footprint and industry-leading fulfillment capabilities, matches Maersk’s strategic intent to support customers’ supply chain needs end-to-end as a trusted partner in control of the assets, the statement says. With the intended 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.
CEO of Ocean & Logistics at Maersk Vincent Clerc says, “With this move, we will boost our warehousing and distribution offering and respond to the rapidly growing needs of our customers for contract logistics. Guided by a customer-centric culture and well-executed operations, LF Logistics has built an unparalleled track record of executing a superior omnichannel strategy for customers, which is a unique position we can use to build and operate fulfillment for customers across our network.”
As part of the agreement to acquire LF Logistics, Maersk will enter a strategic partnership with Li & Fung to develop logistics solutions.
LF Logistics operates an extensive Pan-Asian network and is the supply chain partner of choice for companies looking to grow in the Asia-Pacific region. LF Logistics specializes in B2B and B2C distribution solutions within retail, wholesale, and e-commerce. LF logistics’ deep customer relations and operational excellence is a strong base for Maersk to expand within Asia-Pacific and globally.
CEO of Li & Fung and CEO of LF Logistics Joseph Phi says, “We recognize that for LF Logistics to be a global leader in the industry, achieving scale is of paramount importance. Maersk provides the ideal fit for our people and our customers. It has a substantial presence around the world and will utilize LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfillment offering globally. This is a testament to the strength of our team, our unique operations-centric culture, and our superb growth potential. Together we will deliver a compelling value proposition that allows our people to attain their full potential and our customers to achieve sustainable competitive advantage.”