CMA CGM Group will buy the majority of Ingram Micro’s Commerce & Lifecycle Services (CLS) activities, including Shipwire and the company’s technology forward logistics businesses in North America, Europe, Latin America and Asia-Pacific.
The enterprise value of the transaction, which is expected to close during the first half of 2022, is US$3 billion, according to a Share and Asset Purchase Agreement signed by both companies, while the remaining portions of the existing CLS business will be retained by Ingram Micro.
The Ingram Micro CLS business specialises in eCommerce contract logistics and omni-channel fulfillment, while Shipwire is a cloud-based logistics technology platform.
CMA CGM said the acquired business represents estimated annual revenues of US$1.7 billion in 2021 and employs 11,500 staff members worldwide across 59 warehouses, with a strong presence in the US and in Europe.
Between CLS business and another CMA CGM’s subsidiary CEVA Logistics, a logistics and supply chain company, 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,” pointed out the French carrier, which believes that together, CEVA Logistics and the CLS business will be one of the world’s leading end-to-end eCommerce services.
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, commented, “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.”
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.
“This acquisition will further complement CEVA Logistics offering in the contract logistics industry and support its objective to become a Top 5 global third-party logistics player,” said CMA CGM.
Meanwhile, the Shipwire order fulfillment 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 and CEVA’s warehouses to accelerate its development and extend its global footprint.
The CMA CGM Group intends to fund this acquisition from its own resources, while the closing of this transaction is subject to customary conditions, including regulatory approvals by relevant authorities.
“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,” said Alain Monié, CEO of Ingram Micro.
