CMA CGM has crossed the finish line. The France-based shipping conglomerate announced Thursday that it has completed its $1.4 billion acquisition of FedEx Supply Chain, the contract logistics arm of FedEx Corp.
The purchase gives a major boost to Ceva Logistics’ contract logistics operations in North America. It also fits neatly into CMA CGM’s wider ambition: becoming a true end-to-end logistics provider, able to move goods from the factory gate through customs clearance and warehousing to final-mile delivery to stores and homes. The group can do so with its own container vessels, port terminals and cargo airline, while its non-asset-based divisions rely on third-party partners.
At the helm of Ceva is Patrick Moebel, whom privately held CMA CGM recruited last summer as CEO. Moebel previously headed FedEx Logistics, FedEx’s freight forwarding and customs clearance unit.
The deal, first unveiled on July 1, comes with the commitments announced at the time. Over several years, CMA CGM will become a preferred ocean carrier for FedEx (NYSE: FDX), and the two companies plan to cooperate on air cargo capacity on key strategic routes, Asia-Europe among them. With FedEx operating the largest cargo airline in the world, the collaboration is expected to improve aircraft utilization and give both players more flexibility in deploying aircraft on long-haul routes.
The numbers show the scale of the shift for Ceva. The acquisition triples its North American warehouse footprint, adding roughly 34 million square feet of space and 130 customers. The combined business now runs about 150 warehouses, lifts Ceva’s presence in North America to more than 240 locations and doubles its workforce to 20,000 people.
Quality matters as much as quantity here. Many FedEx Supply Chain facilities are technologically advanced, equipped with automation and robotics. Ceva also gains sector expertise in healthcare, technology, consumer goods and retail, which strengthens its ability to manage complex, end-to-end supply chains across the United States and Canada, CMA CGM said in a news release.
For FedEx, the sale means a sharper focus. Supply Chain was a small piece of the group, accounting for less than 2% of its consolidated annual revenue. The company will now concentrate on its core freight transportation and parcel delivery services.
