CMA CGM Group, a leading provider in shipping and logistics, and Ingram Micro have signed a Share and Asset Purchase Agreement for the CMA CGM Group 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 remaining portions of the existing CLS business will be retained by Ingram Micro. The enterprise value of the transaction is $3.0 billion, according to the group’s announcement.
The Ingram Micro CLS business being acquired specializes in ecommerce contract logistics and omni-channel fulfillment. The transaction also 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 U.S. and in Europe, according to the group, which also owns CEVA Logistics.
CMA CGM Group explained in its announcement that the acquisition shows its commitment to strengthening its position as a global leader in shipping and logistics. Between 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 group added, and represent the fourth-largest global provider of contract logistics services.
“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. 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.”
Alain Monié, CEO of Ingram Micro, commented, “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.”