French liner CMA CGM has increased its e-commerce and contract logistics footprint by acquiring most of Ingram Micro’s Commerce & Lifecycle Services business (CLS) and its Shipwire cloud-based logistics technology platform.
The transaction has an enterprise value of $3bn and includes the company’s technology forward logistics businesses in North America, Europe, Latin America and Asia Pacific. The remaining portions of the existing CLS business will be retained by US-based Ingram Micro. The acquired business is expected to generate revenues of $1.7bn in 2021 and employs 11,500 staff members worldwide across 59 warehouses.
The move by the Marseille-headquartered CMA CGM will combine CEVA Logistics and Ingram Micro CLS, creating the fourth-largest provider of contract logistics services. Between CEVA Logistics and the CLS business, the combined logistics workforce will number approximately 90,000 people across nearly 1,100 sites in 160 countries. The Shipwire order fulfillment platform will be able to access CMA CGM’s client base of more than 100,000 customers and CEVA’s warehouses.
“The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group. After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world’s top four in contract logistics. Its position will be significantly strengthened in the US and European markets, enhancing its ability to seize the opportunities offered by the boom of e-commerce,” said Rodolphe Saadé, chairman and CEO of the CMA CGM group.
CMA CGM intends to fund this acquisition from its own resources having made record profits this year. The transaction is expected to close during the first half of 2022. Michiel Alting von Geusau, currently executive vice president, and president of global Commerce & Life Cycle Services for Ingram Micro, will continue to lead the business within CEVA Logistics.