Maersk agrees to buy Asian warehouse giant, LF Logistics for $3.6 billion

Maersk buys LF Logistics to expand ocean shipping into inland distribution.

A.P Moller- Maersk is a Danish shipping company that actively deals with ocean transportation. The company agreed to buy LF Logistics which is another Hongkong based Logistics company. The company is owned by Li and Fung (78.3%) and Temasek Holdings (21.7%). Temasek bought 22% of the company in 2019. Since 2019, the valuation of LF Logistics has doubled.

With a network of 223 warehouses, including 49 in China, and around 10,000 employees in 14 Asian countries, LF Logistics provides land-based services such as warehousing and trucking to more than 250 global customers.

As per the reports, Maersk plans the growth of LF Logistics by doubling revenue to $ 2 billion. With the deal, Maersk will own 549 warehouses globally and increase total warehouse floor capacity by 40%, creating the world’s seventh-largest contract logistics company.

The company has grown a lot since 2019, valuations, in general, are high, and we are paying a control premium which Temasek did not pay,” Vincent Clerc, head of Maersk’s ocean and logistics business, told Reuters in an interview.

 

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time