CMA Closes $1.4B Deal to Acquire FedEx Supply Chain

CMA CGM Group has finalized its purchase of FedEx Supply Chain, officially closing a $1.4 billion deal that was first announced in July.

According to an October 1 release, the acquisition effectively triples the North American logistics footprint of CMA's 3PL subsidiary, CEVA Logistics, while adding 34 million square feet of warehouse space. CMA notes that the deal will also speed up its deployment of automation and robotics across its North American network, and provide a boost to CEVA's ability to manage more complex supply chains in the U.S. and Canada.

"By significantly expanding our contract logistics capabilities, we are strengthening our ability to offer customers integrated, end-to-end supply chain solutions across ocean, air, land and logistics," said CMA CGM Group CEO Rodolphe Saadé.

The combined business between CMA and FedEx Supply Chain will operate 150 warehouses, growing CEVA's North American workforce to 20,000 people across 240 locations. Additionally, CMA CGM will become a preferred ocean carrier for FedEx, with CMA providing transport and carrier services under a non-exclusive agreement. The companies will also plan to work together on an air cargo capacity agreement addressing a handful of key routes.