Maersk Completes $3.6 Billion Takeover.

A.P. Moller Maersk completes another major acquisition, this time costing as much as $3.6 billion and gaining a greater footing in the Asia-Pacific region.

A.P. Moller-Maersk completed the purchase of Hong Kong-based contract logistics company LF Logistics for $3.6 billion, adding 223 new warehouses to its network. The logistics provider has a strong presence in the Asia-Pacific market, a significant attraction for Maersk. With this purchase, Maersk now consists of 549 facilities worldwide and hopes to double its revenue throughout the next four years.

Lf Logistics V2 720x405

Photo Credit: A.P. Moller – Maersk

Per A.P. Moller-Maersk:

  • The value of the transaction is USD 3.6bn (enterprise value) post-IFRS 16 lease liabilities, reflecting a pre-synergy EV/EBITDA multiple of 14.2x based on actual EBITDA for full-year 2021 for the in-country logistics business. Driven by the organic growth and commercial synergies, it is expected that revenue and EBITDA in the in-country logistics business will more than double by the end of full-year 2026.
  • In addition, an earn-out with a total value of up to USD 160m related to future financial performance has been agreed as part of the transaction.
  • As part of the transaction to acquire LF Logistics, Maersk has entered a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services with Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain.

 

September 2, 2022 by Brielle Jaekel from A.P. Moller- Maersk
Source: Supply and Demand Chain Executive, https://www.sdcexec.com/transportation/news/22431616/ap-moller-maersk-maersk-completes-36-billion-takeover, 11 September 2022

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