CMA CGM Buys FedEx Unit for $1.4B, Tripling North American Footprint

CMA CGM agreed to acquire FedEx Supply Chain for an enterprise value of $1.4 billion. The shipping giant will manage the acquisition through its subsidiary, CEVA Logistics. This deal nearly triples CMA CGM’s contract logistics operations in North America.

FedEx is divesting the unit to focus on its core transportation network. The sale follows the recent spin-off of FedEx Freight. The transaction includes all business assets and nearly 10,000 employees.

Both companies signed multi-year commercial agreements for ocean and air freight. CMA CGM will become a preferred ocean carrier for FedEx.