AP Moller-Maersk is to acquire LF Logistics, a Hong Kong-based contract logistics company, for $3.6bn. LF specialises in omnichannel fulfilment services, ecommerce and inland transport in the Asia-Pacific region.

“The acquisition of LF Logistics is an important and truly strategic milestone on our journey to become the global integrator of container logistics; a global logistics company that provide digitally enabled end-to-end logistics based on control of critical assets,” said Soren Skou, CEO of Maersk. “With the acquisition of LF Logistics, we add critical capabilities in Asia Pacific to support our customers long-term growth in 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 fulfilment capabilities, matches Maersk’s intent to support customers’ supply chain needs end-to-end as a partner in control of the assets. 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 metres.

“With this move, we will boost our warehousing and distribution offering and respond to the rapidly growing needs of our customers for contract logistics,” said Vincent Clerc, CEO of ocean and logistics at Maersk. “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 fulfilment to customers across our network.”

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. It specialises in B2B and B2C distribution within retail, wholesale and ecommerce.

“We recognise that for LF Logistics to be a global leader in the industry, achieving scale is of paramount importance,” said Joseph Phi, CEO of LF Logistics. “Maersk provides the ideal fit for our people and our customers. It has a substantial presence around the world and will utilise LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfilment offering globally. This is testament to the strength of our team, our unique operations-centric culture and 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.”

The acquisition is subject to regulatory approvals and is expected to close in 2022.

LF Logistics is privately owned by Li & Fung (78.3%) and Temasek Holdings (21.7%). Over the past 22 years, LF has expanded its geographic presence, with an intention to provide integrated logistics to customers across Asia-Pacific. It employs 10,000 people and has 223 warehouses and fulfilment centres in 14 countries totalling 2.7m square metres.

In the full-year 2020, LF Logistics reported a revenue of around $1.3bn.

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

Maersk operates in 130 countries and employs about 95,000 people.