Ocean shipping powerhouse CMA CGM Group and Ingram Micro have signed an agreement for CMA CGM to acquire most of Ingram Micro’s Commerce & Lifecycle Services (CLS) activities, including Shipwire and the company’s technology forward logistics businesses in North America, Europe, Latin America and Asia-Pacific.
The enterprise value of the transaction is $3 billion. The remaining portions of the existing CLS business will be retained by Ingram Micro.
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. CMA CGM said the purchase illustrates its commitment to strengthening its position as a global leader in shipping and logistics.
Between CEVA Logistics and the CLS business, CMA CGM’s combined logistics workforce will constitute approximately 90,000 people across nearly 1,100 sites in 160 countries. The combination of CEVA Logistics and Ingram Micro CLS activities will create the fourth-largest global provider of contract logistics services.
“The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group,” Rodolphe Saadé, chairman and CEO of CMA CGM Group, said. “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 U.S. and European markets, enhancing its ability to seize the opportunities offered by the boom of e-commerce. Committed to providing leading end-to-end supply chain solutions, the CMA CGM Group will continue its development, relying on two solid pillars, shipping and logistics, with a world leadership position in both sectors.”
Michiel Alting von Geusau, currently executive vice president of Ingram Micro and president of CLS, will continue to lead the business within CEVA Logistics. The acquisition will further complement CEVA Logistics offering in the contract logistics industry and support its objective to become a Top 5 global third-party logistics player. CEVA is already ranked in the Leaders quadrant by Gartner in its 2021 Magic Quadrant Third-Party Logistics Worldwide report.
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, CMA CGM said. The CLS business has a strong base in contract logistics with strong e-commerce capabilities, including reverse logistics management, parcel visibility and same-day delivery.
The Shipwire order fulfilment platform provides flexible e-commerce 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.
CMA CGM Group intends to fund the 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.