AP Moller – Maersk finalizes the acquisition of LF Logistics

Copenhagen, Denmark – Today, AP Moller – Maersk (Maersk) announces the completion of the acquisition of LF Logistics, a Hong Kong-based contract logistics company with premium capabilities in omnichannel fulfillment services, e-commerce and domestic transport in the Asia-Pacific region. As a result, LF Logistics will be renamed Maersk.

I am delighted to welcome LF Logistics to Maersk. Maersk in Asia has historically focused primarily on shipping from Asia and related logistics services. Transport and manage goods made in Asia for consumer markets in the West and beyond. With the addition of LF Logistics, Maersk gains unique, best-in-class capabilities to serve large and fast-growing consumer markets in Asia. In addition, LF Logistics’ expertise in omnichannel processing positions us well in the global e-commerce market.

Ditlev Blicher

Regional Managing Director Asia-Pacific at AP Moller – Maersk

Following the acquisition, Maersk will add 223 warehouses* to the existing portfolio, bringing the total number of facilities to 549 worldwide, spread over a total of 9.5 million 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 expand in the Asia-Pacific region. LF Logistics specializes in B2B and B2C distribution solutions in retail, wholesale and e-commerce and has a strong track record of deep customer relationships and operational excellence, which provides a solid foundation for Maersk to expand in Asia-Pacific and globally.

LF Logistics has an enviable track record of profitable growth in the region for over 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 both companies will enable our customers to gain a sustainable competitive advantage and our employees to reach their full potential. We look forward to a seamless transition experience for our colleagues and customers.

Joseph Phi

CEO of Li & Fung Group and CEO of LF Logistics

LF Logistics, with its vast footprint in Asia Pacific and industry-leading execution capabilities, aligns with Maersk’s strategic intent to meet end-to-end customer supply chain needs. as a trusted partner controlling the assets.

The value of the transaction is $3.6 billion (enterprise value) after IFRS 16 lease liabilities, reflecting an EV/EBITDA multiple before synergy of 14.2x based on actual EBITDA for the whole year 2021 for logistics activity in the country. Driven by organic growth and commercial synergies, the turnover and EBITDA of the logistics activity in the country should more than double by the end of 2026.

In addition, an earn-out totaling up to US$160 million related to future financial performance has been agreed as part of the transaction.

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

Additionally, following separate regulatory approvals, Li & Fung’s parent company is expected to retain and continue to grow the separate GFM business.

*LF Logistics had 223 warehouses at the end of 2021.

About AP Moller – Maersk

AP Moller – Maersk is an integrated container logistics company that strives to connect and simplify its customers’ supply chains. As a global leader in shipping services, the company operates in 130 countries and employs over 100,000 people. Maersk aims to become climate neutral by 2040 with new technologies, new vessels and new fuels.

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