Monday, December 13, 2021

Container Shipping Giant Continues Expansion into General Logistics

French Outfit Currently Moving Monthly on New Acquisitions
Shipping News Feature

FRANCE – WORLDWIDE – The determination of container shipping line CMA CGM to permeate every facet of the maritime supply chain continues unabated. Last month the French group extended its terminal handling interests again, this time in Los Angeles, just weeks previously it dipped its toes into eCommerce and in September it was cross Channel ferry trade, and so the list goes on.

Now it seems the Marseille headquartered group is taking more of an interest in cloud based technology systems, with the news last week that it has signed a Share and Asset Purchase Agreement to acquire most of Ingram Micro’s Commerce & Lifecycle Services activities (CLS), including Shipwire and the company’s technology forward logistics businesses in North America, Europe, Latin America and Asia-Pacific.

The Ingram Micro CLS business being acquired specialises in eCommerce contract logistics and omni-channel fulfilment. 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 US and Europe.

The continuing development of its group logistics interests mean that now between subsidiary CEVA Logistics and the CLS business, the 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. 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.

CMA CGM believes that the new additions will complement CEVA Logistics’ existing eCommerce business and accelerate its growth in key market segments, such as technology, retail and fashion, stating that the CLS business has a strong base in contract logistics with excellent eCommerce capabilities including reverse logistics management, parcel visibility, and same-day delivery. As the deal was struck Alain Monié, CEO of Ingram Micro, said:

“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 Shipwire order fulfilment platform 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 plus CEVA’s warehouses, thus accelerating its development and extending its global footprint. Rodolphe Saadé, Chairman and CEO of the CMA CGM Group commented:

“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 four 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.

”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.”

The CMA CGM Group says it 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. Jacob Kotzubei, Partner at Platinum Equity, and Matthew Louie, Managing Director at Platinum Equity, which acquired Ingram Micro in July, concluded:

“We have great respect for CMA CGM Group and believe CLS is an excellent fit with CEVA Logistics. This move allows Ingram Micro to focus on the growth and expansion of its core technology distribution and cloud services capabilities. We will continue to invest in growing those businesses organically and through prospective acquisitions.”