Danish shipping company A.P. Moller-Maersk on Aug. 31 announced its $3.6 billion acquisition of Hong Kong-based contract logistics company LF Logistics.
As a result of the acquisition, LF Logistics is being rebranded as Maersk. The newly named Maersk is expected to add 223 warehouses to its existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5 million square meters.
“Maersk in Asia has historically been primarily focused on ocean transportation out of Asia and related logistics services,” A.P. Moller-Maersk Regional Managing Director of Asia Pacific Ditlev Blicher said. “With the addition of LF Logistics, Maersk gains unique and best-in-class capabilities to servicing the important and fast-growing consumer markets in Asia.”
“Furthermore,” he added, “LF Logistics’ expertise in omni-channel fulfilment positions us well with the global e-commerce market.”
LF Logistics currently employs 10,000 people, operates an extensive Pan-Asian network, and is one of the supply-chain partners of choice for companies looking to grow in the Asia-Pacific region.
The company specializes in business-to-business and business-to-consumer distribution solutions within retail, wholesale and e-commerce and has a track record of customer relations and operational excellence.
“LF Logistics, with its Asia-Pacific wide footprint and industry-leading fulfilment capabilities, matches Maersk’s strategic intent to support customers’ supply-chain needs end-to-end as a trusted partner in control of the assets,” A.P. Moller – Maersk said in a statement.
As part of the transaction, Maersk has entered a strategic partnership with Hong Kong-based supply chain management company Li & Fung to develop a comprehensive range of end-to-end global services. Li & Fung is to focus on the upstream supply chain with Maersk focusing on the downstream supply chain.
“Maersk’s global presence provides an ideal platform for our next phase of organizational expansion and development,” LF Logistics CEO Joseph Phi said. “The unique and complementary strengths of the two companies will allow our customers to achieve sustainable competitive advantage and our people to attain their full potential.”