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Maersk Completes $3.6 Billion LF Logistics Acquisition

A.P. Moller-Maersk announced on Wednesday the completion of its $3.6 billion acquisition of LF Logistics, a Hong Kong-based contract logistics company with premium capabilities within omnichannel fulfilment services, e-commerce and inland transport in the Asia-Pacific region.

LF Logistics will now be rebranded to Maersk. Driven by the organic growth and commercial synergies, it is expected that revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) in the in-country logistics business will more than double by the end of 2026, Maersk said.

In addition, an earn-out with a total value of up to $160 million related to future financial performance has been agreed as part of the transaction. As part of the deal to acquire LF Logistics, Maersk has entered a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services, with Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain.

“Maersk in Asia has historically been primarily focused on ocean transportation out of Asia and related logistics services, transporting and managing goods manufactured in Asia for consumer markets in the West and beyond.” Ditlev Blicher, regional managing director of Asia Pacific at Maersk, 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, LF Logistics expertise in omnichannel fulfilment positions us well with the global e-commerce market.”

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Following the acquisition, Maersk will add 223 warehouses to its existing portfolio, bringing the total number of facilities to 549 globally across 9.5 million square meters. LF Logistics employs 10,000 people, operates an extensive Pan-Asian network and is the supply chain partner of choice for companies looking to grow in the Asia-Pacific region. LF Logistics specializes in B2B and B2C distribution solutions within retail, wholesale and e-commerce.

“LF Logistics has an enviable track record of profitable growth in the region for more than two decades,” Joseph Phi, group CEO of Li & Fung and CEO of LF Logistics, said. “Maersk’s global presence provides an ideal platform for our next phase of organizational expansion and development. 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. We look forward to a seamless transition experience for both our colleagues and customers.”

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.