FedEx sells supply chain unit to CMA CGM for $1.4B

France-based container shipping and logistic giant CMA CGM Group has agreed to acquire FedEx Supply Chain, the contract logistics arm of FedEx Corp., for $1.4 billion in enterprise value, the companies announced on Wednesday. The acquisition, expected to close later this year, would nearly triple the size of the North American contract logistics operations of Ceva Logistics, a subsidiary of CMA CGM.

With roots in ocean shipping, privately held CMA CGM has spent the past decade building a one-stop-shop for logistics services, including its own all-cargo airline.

The combined entity would operate about 150 warehouses, expanding CEVA's overall presence in North America to a combined workforce of 20,000 people located at more than 240 locations, according to the announcement. Ceva is the fifth largest global third-party logistics provider by gross revenue and seventh largest warehouse operator by square footage, according to Armstrong & Associates.CMA CGM and FedEx (NYSE: FDX) said they will enter into multi-year commercial agreements related to air and ocean freight, once the transaction is finalized. CMA CGM will become a preferred ocean carrier for FedEx, offering ocean transport

Fuente original: Yahoo Finance (https://finance.yahoo.com/small-business/articles/fedex-sells-supply-chain-unit-141235429.html)