Copenhagen, Denmark - Today, A.P. Moller - Maersk (Maersk) announces the completion of its acquisition of LF Logistics, a Hong Kong-based contract logistics company, with premium capabilities within omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region. As consequence, LF Logistics will be rebranded to Maersk.

I am thrilled to welcome LF Logistics to Maersk. Maersk in Asia has historically been primarily focused on ocean transportation out of Asia and related logistics services. Transporting and managing goods manufactured in Asia for consumer markets in the West and beyond. With the addition of LF Logistics, Maersk gains unique and best in class capabilities to servicing the important and fast-growing consumer markets in Asia. Furthermore, LF Logistics expertise in omnichannel fulfilment positions us well with the global e-commerce market.

Ditlev Blicher
Regional Managing Director of Asia Pacific at A.P. Moller – Maersk

Following the acquisition, Maersk will add 223 warehouses* to the existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5m square meters.

LF Logistics employs 10,000 people, operates an extensive Pan-Asian network, and is the supply chain partner of choice for companies looking to grow in the Asia-Pacific region. LF Logistics specialises in B2B and B2C distribution solutions within retail, wholesale, and e-commerce and has a track record of deep customer relations and operational excellence, which is a strong base for Maersk to expand within Asia-Pacific and globally.

LF Logistics has an enviable track record of profitable growth in the region for more than two decades. Maersk’s global presence provides an ideal platform for our next phase of organizational expansion and development. The unique and complementary strengths of the two companies will allow our customers to achieve sustainable competitive advantage and our people to attain their full potential. We look forward to a seamless transition experience for both our colleagues and customers.

Joseph Phi
Group CEO of Li & Fung and CEO of LF Logistics

LF Logistics, with its Asia-Pacific wide footprint and industry leading fulfilment capabilities, matches Maersk’s strategic intent to support customers’ supply chain needs end-to-end as a trusted partner in control of the assets.

The value of the transaction is USD 3.6bn (enterprise value) post-IFRS 16 lease liabilities, reflecting a pre-synergy EV/EBITDA multiple of 14.2x based on actual EBITDA for full-year 2021 for the in-country logistics business. Driven by the organic growth and commercial synergies, it is expected that revenue and EBITDA in the in-country logistics business will more than double by the end of full-year 2026.

In addition, an earn-out with a total value of up to USD 160m related to future financial performance has been agreed as part of the transaction.

As part of the transaction to acquire LF Logistics, Maersk has entered a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services with Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain.

Further, following separate regulatory approvals, the parent company of Li & Fung is expected to retain and continue to build the carved-out GFM business.

*LF Logistics had 223 warehouses end 2021.

About A.P. Moller - Maersk

A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, the company operates in 130 countries and employs more than 100,000 people. Maersk is aiming to become climate-neutral by 2040 with new technology, new vessels, and new fuels.

For further information, please contact:

Adhish Alawani
Adhish Alawani
Media Relations Manager, Maersk West & Central Asia
Bonnie Hui Huang
Bonnie Hui Huang
Regional Media Relations Manager
+86 1065351301
Christian Kjærgaard-Winther - Senior Press Officer
Christian Kjærgaard-Winther
Senior Press Officer
+45 314 496 17

Anything you need, we’re here to help

Solutions

Logistics solutions

We meet customer needs from one end of the supply chain to the other.
Headset

Contact us

Our dedicated team of experts are here for you.
Find Prices

Ready to ship?

Look up rates for new shipments and inland tariffs.
Industry Insights

Sign up to our newsletter

To provide you with the right tools and the most relevant information for you to best manage your supply chain, please sign-up to our bi-weekly newsletter on global logistics.