Autos & Transportation

French shipping firm CMA CGM buys part of Ingram Micro in $3 bln deal

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The CMA CGM Marco Polo, an Explorer class container ship docks at Elizabeth port as seen from Bayonne, New Jersey, U.S., May 20, 2021. REUTERS/Eduardo Munoz

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PARIS, Dec 8 (Reuters) - France's CMA CGM said it had agreed to buy most of Ingram Micro's Commerce & Lifecycle Services (CLS) activities in a deal valued at $3 billion, adding this was aimed at accelerating the shipping group's push into end-to-end logistics.

CMA CGM, one of the world's largest container shipping lines, said it will finance the acquisition from its own funds and expects the transaction to close in the first half of 2022.

The part of Ingram Micro's CLS business being bought specialises in logistics outsourcing for e-commerce and order fulfilment across sales channels, and will allow CMA CGM's CEVA Logistics unit to become the world's fourth-largest global contract logistics provider, it said in a statement.

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Ingram Micro is a global technology and supply chain services provider which was bought this year by U.S. buyout firm Platinum Equity in a $7.2 billion deal.

Like its rivals, CMA CGM has extended its presence in port infrastructure and non-maritime logistics services. read more

The deal with Ingram Micro marks its second major takeover in a month after announcing in early November it would acquire a container terminal at the port of Los Angeles for around $2 billion. read more

Marseille-based CMA CGM's investments have been supported by a surge in earnings as the coronavirus pandemic has led to high freight rates and saturated vessel capacity. read more

The shipping group, controlled by the Saade family, said on Wednesday the activities to be absorbed from Ingram Micro were focused on the U.S. and European markets and segments including technology, fashion and retail, with 59 warehouses worldwide.

The takeover would also include the Shipwire e-commerce logistics platform for small and medium-sized companies, which would gain access to CMA CGM's over 100,000 customers, it added.

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Reporting by Gus Trompiz; Editing by GV De Clercq and Alexander Smith

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