(Reuters) Maersk is seeking to diversify beyond its core ocean freight operations after agreeing to acquire Hong Kong’s LF logistics in an all-cash deal valued at $3.6 billion.
Maersk says the acquisition of LF Logistics expands its capabilities in offering an end-to-end supply chain solution globally.
The deal, which closes in 2022, is expected to add a network of 223 warehouses and over 250 global customers, which LF Logistics commands to Maersk.
Maersk is also expecting to more than double LF Logistics’ revenue by 2026 from $1.3 billion last year.
The deal for LF Logistics happens as leading shipping companies target rivals for acquisitions following record container freight rates due to the pandemic.
LF Logistics is Maersk’s largest takeover, with the container shipping giant having already bought several other firms recently. At $3.6 billion, the price is more than double from $1.4 billion when LF Logistics was valued two years ago.
MAERSK-B is up +0.090%.
