CMA CGM buys US-based Ingram Micro CLS for $3bn
French carrier CMA CGM has signed a deal with US-based Ingram Micro to buy most of its commerce
December 9, 2021: French carrier CMA CGM has signed a deal with US-based Ingram Micro to buy most of its commerce & lifestyle activities (CLS) for an enterprise value of $3 billion.
"The deal includes Shipwire, a cloud-based logistics technology platform, and the company’s technology forward logistics businesses in North America, Europe, Latin America and Asia-Pacific. The remaining portions of the existing CLS business will be retained by Ingram Micro," according to an official statement from CMA CGM.
The acquired CLS business specialises in ecommerce contract logistics and omni-channel fulfilment. The business is expected to end 2021 with a revenue of $1.7 billion and employs 11,500 worldwide across 59 warehouses.
“The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group," said Rodolphe Saadé, Chairman and CEO of 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 U.S. and European markets, enhancing its ability to seize the opportunities offered by the boom of ecommerce."
The combined logistics workforce with CEVA Logistics will be approximately 90,000 people across nearly 1,100 sites in 160 countries, the statement added. "The combination of CEVA Logistics and Ingram Micro CLS activities 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.
Q3 profit zooms, orders freighters
CMA CGM net profit zoomed to $5.6 billion for the quarter ended September 30, 2021, and revenue increased 89 percent to $15.3 billion on higher freight rates.
CMA CGM AIR CARGO, launched by CMA CGM in February 2021, recently signed a memorandum of understanding (MoU) for the purchase of four A350F freighter aircrafts.
With a carrying capacity of more than 100 metric tonnes and a range of nearly 9,000 kilometres, A350Fs will enable CMA CGM AIR CARGO to strengthen its long-haul offer.
(Source: ITNL.in)
