The deal will be funded from the CMA CGM Group’s own resources, the company revealed today. The closing of the transaction, which is expected during the first half of 2022, is subject to customary conditions, including regulatory approvals by relevant authorities.
Ingram Micro CLS business specializes in eCommerce contract logistics and omni-channel fulfillment. The transaction also includes Shipwire, a cloud-based logistics technology platform. As cited by CMA CGM in its statement, the acquired business generated 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.
CMA CGM Group said the deal 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.” This acquisition is also part of the CMA CGM Group strategy to build and develop extensive transportation and logistics solutions in support of its customers’ supply chains.
The shipping giant added that the “combination of CEVA Logistics and Ingram Micro CLS activities will create the fourth-largest global provider of contract logistics services”. Moreover, it is said that the 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.
According to CMA CGM’s press release, Ingram Micro’s CLS business will complement CEVA Logistics’ existing eCommerce business and accelerate its growth in key market segments, such as technology, retail and fashion. The shipping company believes Ingram Micro’s CLS business has a strong base in contract logistics with “excellent eCommerce capabilities including reverse logistics management, parcel visibility, and same-day delivery.”
When it comes to Shipwire, CMA CGM said the company’s order fulfilment platform provides “flexible eCommerce logistics solutions for small and medium-sized companies”. Shipwire will also be able to access CMA CGM’s client base of more than 100,000 customers as well as CEVA’s warehouses.
Commenting on the deal, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said:
“The acquisition of Ingram Micro CLS is strategic for 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, added:
“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.”