A.P. Moller – Maersk (Maersk) has agreed to acquire LF Logistics, a Hong Kong-based contract logistics company, with premium capabilities within omnichannel fulfilment services, e-commerce, 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 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 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,” said Soren Skou, CEO of Maersk.
With its Asia-Pacific wide footprint and industry-leading fulfilment capabilities, LF Logistics matches Maersk’s strategic intent to support customers’ supply chain needs end-to-end as a trusted 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 meters.
“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 fulfilment to customers across our network,” said Vincent Clerc, CEO of Ocean & Logistics at Maersk.
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 specialises 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.
“We recognise 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 worldwide and will utilise LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfilment 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 a sustainable competitive advantage,” said Joseph Phi, CEO of Li & Fung and CEO of LF Logistics.
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