CMA CGM completes FedEx Supply Chain acquisition

CMA CGM Group has completed its $1.4-billion acquisition of FedEx Supply Chain, expanding the North American contract logistics operations of its subsidiary, CEVA Logistics.

According to the company, the acquisition adds approximately 34 million square feet of warehouse space and nearly 10,000 employees. The combined business will operate about 150 warehouses, expanding CEVA’s North American network to more than 240 locations and a workforce of approximately 20,000 people.

“The completion of this acquisition marks an important step in the development of CMA CGM and CEVA Logistics in North America,” said Rodolphe Saadé, chairman and CEO of CMA CGM Group. “By significantly expanding our contract logistics capabilities, we are strengthening our ability to offer customers integrated, end-to-end supply chain solutions across ocean, air, land and logistics.”

The companies also entered into multi-year commercial agreements covering ocean and air freight. Under the agreements, CMA CGM will become a preferred ocean carrier for FedEx under a non-exclusive arrangement, while the two companies plan to collaborate on air cargo capacity on key routes, including Asia-Europe.