CMA CGM buying Ingram Micro’s logistics business

by Inside Logistics Online Staff

CMA CGM Group is buying most of Ingram Micro’s Commerce & 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$3.0 billion.

Ingram Micro’s CLS business specializes in e-commerce contract logistics and omni-channel fulfillment. The transaction includes Shipwire, which is a cloud-based logistics technology platform.

The acquired business will earn 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 U.S. and in Europe.

The acquisition complements CMA CGM’s controlling interest in CEVA Logistics. Between CEVA Logistics and the CLS business, the Group’s combined logistics workforce will constitute approximately 90,000 people across nearly 1,100 sites in 160 countries.

“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 four in contract logistics,” said Rodolphe Saadé, chairman and CEO of the CMA CGM Group.

“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. ”

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.

The Shipwire order fulfillment platform provides 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 expand.

Platinum Equity, which acquired Ingram Micro in July, said in a statement: “We have great respect for CMA CGM Group and believe CLS is an excellent fit with CEVA Logistics. This move allows Ingram Micro to focus on the growth and expansion of its core technology distribution and cloud services capabilities. We will continue to invest in growing those businesses organically and through prospective acquisitions.”

The CMA CGM Group will fund this acquisition from its own resources. The closing of this transaction is subject to customary conditions, including regulatory approvals by relevant authorities. The transaction is expected to close during the first half of 2022.