LF Logistics sold for USD 3.2 billion
Just before Christmas Copenhagen-based A.P. Moller-Maersk announced the acquisition of LF Logistics, a Hong Kong-based contract logistics company that specialises in omni-channel fulfilment services in the Asia-Pacific region. According to CEO Soren Skou the move represents another step in Maersk’s ambition “to support customers’ end-to-end supply-chain needs,” – in other words, to cover the entire supply chain logistically too.
The acquisition will add 223 warehouses to the Danish company’s existing portfolio of 326 facilities, and bring the total area covered to 9.5 million sqm. As part of the purchase agreement Maersk will enter into a strategic partnership to develop logistics solutions with the company Li & Fung, privately-owned by Li & Fung (78.3%) and Temasek Holdings (21.7%).
In 2020 LF Logistics reported revenues of USD 1.3 billion and an adjusted ebitda of USD 235 million. Maersk’s takeover is valued at USD 3.6 billion. An earn-out worth a total of up to USD 160 million and related to future financial performance has also been agreed. The acquisition is subject to regulatory approvals and expected to close in 2022. (sh)