"The Ingram Micro CLS business being acquired specializes in e-commerce contract logistics and omni-channel fulfillment. The transaction includes Shipwire, a cloud-based logistics technology platform," CMA CGM said, adding that the acquired business represents estimated 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 US and in Europe. 

"This acquisition illustrates the CMA CGM Group’s commitment to strengthening its position as a global leader in shipping and logistics," it added.

CMA CGM noted that with the CEVA Logistics and the CLS business, the combined logistics workforce will constitute approximately 90,000 people across nearly 1,100 sites in 160 countries.

4th largest contract logistics provider

"The combination of CEVA Logistics and Ingram Micro CLS activities will create the fourth-largest global provider of contract logistics services," CMA CGM said, noting that Michiel Alting von Geusau, currently executive vice president, and president of Global Commerce & Life Cycle Services for Ingram Micro, will continue to lead the business within CEVA Logistics.

CMA CGM said the Ingram Micro acquisition will also "further complement" CEVA Logistics offering in the contract logistics industry and support its objective to become a Top 5 global third-party logistics player.

Push into e-commerce space

CMA CGM said Ingram Micro’s CLS business will complement CEVA Logistics’ existing e-commerce business and accelerate its growth in key market segments, such as technology, retail and fashion — with CLS business having a strong base in contract logistics with e-commerce capabilities including reverse logistics management, parcel visibility, and same-day delivery. 

It added that together, CEVA Logistics and the CLS businesses will be one of the world’s leading end-to-end e-commerce services provider.

CMA CGM noted that this acquisition is part of its strategy to build and develop extensive transportation and logistics solutions as the Group is also accelerating investments to strengthen its shipping and logistics network.

The CMA CGM Group said it intends to fund this acquisition from its own resources and the closing of the transaction is subject to customary conditions, including regulatory approvals by relevant authorities.

However, it said the transaction is expected to close during the first half of 2022.

"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 4 in contract logistics," said Rodolphe Saadé, chairman and CEO of the CMA CGM Group.

"Its position will be significantly strengthened in the US and European markets, enhancing its ability to seize the opportunities offered by the boom of e-commerce."

Saadé said CMA CGM is committed to providing leading end-to-end supply chain solutions, and the Group will "continue its development, relying on two solid pillars, shipping and logistics."

Jacob Kotzubei, partner at Platinum Equity, and Matthew Louie, managing director at Platinum Equity, which acquired Ingram Micro in July, said 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," Kotzubei said. "We will continue to invest in growing those businesses organically and through prospective acquisitions."