The American courier and logistics giant FedEx has reached an agreement valued at 1.4 billion dollars (1.22 billion euros) to transfer its subsidiary FedEx Supply Chain to the French shipping company CMA CGM. This division is responsible for logistics services such as warehouse management, inventory control, order fulfillment, and returns processing.
The transaction is expected to be completed over the course of this year and aims to triple the size of CMA CGM's logistics business in North America. At the same time, it will allow the French company to consolidate its position in the North American market, where it has operated for 25 years.
Following the integration, the France-based company will become one of the leading contract logistics providers in the region, with a combined workforce of 20,000 employees spread across more than 240 centers and operations in 150 warehouses.
In the coming years, CMA CGM and FedEx plan to sign multi-year commercial agreements related to air and sea transport, through which CMA CGM will become FedEx's preferred ocean carrier.
"We are strengthening our ability to offer customers integrated supply chain solutions. These agreements also reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain," stated the Chairman and CEO of CMA CGM, Rodolphe Saadé.
"Today's announcement allows FedEx to intensify its focus on delivering its unique expertise to high-value vertical sectors, such as healthcare, automotive, aerospace, and data centers," added the President and CEO of FedEx, Raj Subramaniam.