Li & Fung and Maersk Form Long-Term Strategic Partnership, Announce $3.6 Billion Acquisition of LF Logistics by Maersk – UNTV News
HONG KONG, Dec. 22, 2021 /PRNewswire/ — Li & Fung Limited (Li & Fung), the leading global supply chain solutions partner for consumer brands and retailers, and its affiliates, today announced that it has agreed to form a long-term strategic partnership with AP Moller – Maersk (Maersk), an integrated logistics company working to connect and simplify its customers’ supply chains. The partnership will allow both companies to use their respective resources and global networks to create a full suite of end-to-end global supply chain services. In addition to this partnership, Li & Fung entered into a transaction for Maersk to acquire its logistics business, LF Logistics Holdings Limited (LF Logistics) and its various entities, valuing the business at $3.6 billion based on enterprise value. Subject to regulatory approvals, the transaction is expected to close in 2022.
LF Logistics is jointly owned with Temasek, the Singapore sovereign wealth fund (Li & Fung owns 78.3% and Temasek owns 21.7% of the company), and is a leading logistics service provider, offering both contract logistics services through Asia and global freight management services. The company has consistently achieved double-digit growth over the past decade and has an outstanding track record in e-logistics and omnichannel fulfillment.
The strategic partnership follows the recent formation of LFX, which focuses on digital businesses, investments and supply chain finance with GLP, its Singapore-, as Li & Fung continues its journey to help customers navigate the new digital economy.
Spencer Fong, Group Executive Chairman Li & Fung, said, “We are very pleased to have entered into this agreement with Maersk. The divestiture of LF Logistics will further streamline our business to focus on our core commerce and supply chain digitization capabilities, which have seen a strong rebound back to pre-Covid levels. With Covid causing major supply chain disruptions, the importance of a diverse global supply chain network is more pronounced than ever, and Li & Fung is well positioned to serve our customers through our network of 50 markets. export. With Li & Fung’s upstream digital and sourcing expertise and Maersk’s downstream logistics capabilities, we will begin to offer our respective customers the opportunity to leverage this unique end-to-end value chain proposition. rooted in operational excellence, technology and sustainability.
Commenting on the contemplated transaction, Joseph Phi, Group CEO, Li & Fung and CEO of LF Logistics, said, “We recognize that for LF Logistics to be a global industry leader, achieving scale is of paramount importance. Maersk offers the ideal solution for our employees and our customers. It has a significant presence around the world and will use LF Logistics’ talent base and operational platform to grow its logistics and fulfillment offering globally. This speaks to the strength of our team, our unique operations-focused culture and our superb growth potential.
“We are excited and look forward to strengthening our global logistics business and welcoming 10,000 new logistics experts from a customer-centric culture with well-executed operations. With the planned acquisition of LF Logistics, we will bring an extensive warehousing network covering the fast growing market Asia Pacific markets; all backed by a best-in-class operational and technology platform that we can scale globally on our network. We are impressed with how LF Logistics has built its reputation for executing a superior omnichannel strategy for customers, which is a strength we can use to build and leverage customer satisfaction across our network,” said declared Vincent Clerc, CEO of Ocean & Logistics at Maersk.
As part of this strategic partnership, Li & Fung’s parent company is expected to acquire and continue to develop the Global Freight Management (GFM) business after the transaction closes. Until the closing of the transaction, LF Logistics and Maersk will remain two separate independent companies.
Editor’s note: Joseph Phi, CEO of Li & Fung Group and CEO of LF Logistics, will remain CEO of Li & Fung Group following the closing of the transaction and will no longer be CEO of LF Logistics.
About Li & Fung Limited
Founded in 1906, Li & Fung is the world’s leading provider of supply chain solutions. Based at hong kong with offices in all key production markets, it specializes in the responsible management of high-volume, time-sensitive product supply chains for leading retailers and brands around the world. The company’s goal is to create the supply chain of the future, help customers navigate the digital economy and improve the lives of one billion people across the supply chain. . Going further, she created LFX, an incubation, investment and operating platform dedicated to building digital businesses that are transforming the supply chain and retail industry through innovative digital solutions and services such as fintech supply chain and digital product creation and trade.
For more information, please visit www.lifung.com