CMA CGM Group and Ingram Micro have signed a share and asset purchase agreement for the CMA CGM Group to acquire most of Ingram Micro’s Commerce and Lifecycle Services activities (CLS), including Shipwire and the company’s 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 US$3 billion.
The Ingram Micro CLS business being acquired specialises in e-commerce contract logistics and omni-channel fulfillment. The transaction includes Shipwire, a cloud-based logistics technology platform. 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 Ceva Logistics and the CLS business, CMA CGM’s combined logistics workforce will constitute approximately 90,000 people across nearly 1100 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.
Michiel Alting von Geusau, currently executive vice-president, and president of Global Commerce and Life Cycle Services for Ingram Micro, will continue to lead the business within Ceva Logistics.
CMA CGM said Ingram Micro’s CLS business will complement Ceva Logistics’ existing e-commerce business and accelerate its growth in key market segments, such as technology, retail and fashion. The CLS business has a strong base in contract logistics with excellent e-commerce capabilities including reverse logistics management, parcel visibility, and same-day delivery.
The Shipwire order fulfilment platform provides flexible e-commerce 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.
CMA CGM Group chairman and CEO Rodolphe Saadé 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 e-commerce. 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.”
Ingram Micro CEO Alain Monié said, “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.”