CMA CGM Group’s logistics subsidiary CEVA Logistics has signed a $3 billion deal to acquire most of Ingram Micro’s Commerce & Lifecycle Services.
The Ingram Micro CLS business being acquired specialises in eCommerce contract logistics and omni-channel fulfillment.
The transaction includes Shipwire, a cloud-based logistics technology platform.
The acquired business represents estimated annual revenues of $1.7 billion in 2021 and employs 11,500 staff members worldwide across 59 warehouses, with a strong presence in the U.S. and in Europe.
Between CEVA Logistics and the CLS business, the combined logistics workforce for CMA CGM will constitute approximately 90,000 people across nearly 1,100 sites in 160 countries.
Ingram Micro’s CLS business will complement CEVA Logistics’ existing eCommerce business and accelerate its growth in key market segments, such as technology, retail and fashion.
The CLS business has a strong base in contract logistics with eCommerce capabilities including reverse logistics management, parcel visibility, and same-day delivery.
The Shipwire order fulfilment platform also provides flexible eCommerce logistics solutions for small and medium-sized companies. Shipwire will be able to access CMA CGM’s client base of more than 100,000 customers and CEVA’s warehouses to accelerate its development and extend its global footprint.
The deal will create the fourth-largest global provider of contract logistics services.
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.
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said, “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 4 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 eCommerce.”
This is the latest in a recent surge of logistics investments from port and maritime entities. Earlier this month China announced it will form a new state-owned logistics group to be a global supply chain developer; whilst PSA International Pte Ltd (PSA) announced it will acquire Philadelphia-based BDP International to improve end-to-end management of supply chains.
Alain Monié, CEO of Ingram Micro, added, “CMA CGM Group is committed to investing in the technology, capabilities, and talent to rapidly become one of the world’s largest players in the global ecommerce space.
“With a mission of enabling businesses to grow and communities to thrive, I am confident this is an excellent fit for our dynamic, innovative, and solutions oriented CLS team.”
The CMA CGM Group intends to fund this acquisition from its own resources.
The closing of this transaction is subject to customary conditions, including regulatory approvals by relevant authorities. The transaction is expected to close during the first half of 2022.
