Article Summary
Terms of the CMA CGM Group, FedEx Supply Chain deal
- $1.4 billion acquisition: French shipping giant CMA CGM Group has agreed to buy FedEx Supply Chain from FedEx Corp. in a deal expected to close later this year.
- Massive CEVA expansion: The buyout will nearly triple the North American contract logistics operations of CMA CGM subsidiary CEVA Logistics, expanding its regional workforce to 20,000 people across more than 240 locations.
- Strategic freight partnership: Alongside the transaction, the two companies will enter into multi-year air and ocean freight agreements through 2028, naming CMA CGM as a preferred ocean carrier for FedEx.
- FedEx corporate refocus: Divesting the third-party logistics unit allows FedEx to streamline its corporate portfolio and shift its strategic focus toward high-value industrial sectors like healthcare, aerospace, and automotive.
French shipping giant CMA CGM Group has agreed to acquire FedEx Supply Chain from FedEx Corp. (CCJ Top 250, No. 1), the companies announced Wednesday.
The $1.4 billion deal nearly triples the North American contract logistics operations of CMA CGM’s subsidiary, CEVA Logistics, placing it among the continent’s top third-party logistics providers.
The deal comes exactly one month to the day that FedEx spun off its FedEx Freight business into a standalone company and FedEx President and CEO Raj Subramaniam said the divestment allows the logistics giant to streamline its portfolio and sharpen its focus on high-value industrial sectors.
"Today’s announcement enables FedEx to further increase our focus on providing our unique expertise for high-value verticals, including healthcare, automotive, aerospace and data centers," Subramaniam said in a statement.
Once finalized, which is expected later this year, CEVA Logistics will absorb FedEx Supply Chain’s assets and its nearly 10,000 employees. The combined entity will operate roughly 150 warehouses, boosting CEVA’s total North American footprint to more than 240 locations and a workforce of 20,000 people.
FedEx Supply Chain is a third-party logistics (3PL) subsidiary of FedEx Corp. and provides comprehensive supply chain management for businesses. The division—formerly known as GENCO before being acquired by FedEx—functions as an outsourced operations partner for companies in the retail, healthcare, and technology sectors. Its core services include warehousing, e-commerce fulfillment, product returns (reverse logistics), and critical inventory management.
As part of the transaction, CMA CGM and FedEx plan to enter into multi-year commercial agreements for air and ocean freight. Under a non-exclusive agreement, CMA CGM will become a preferred ocean carrier for FedEx. The two companies also intend to share air cargo capacity to boost aircraft utilization and expand long-haul options.
Rodolphe Saadé, chairman and CEO of CMA CGM Group, said the acquisition strengthens the company's ability to provide integrated supply chain solutions while reinforcing its 25-year investment history in the United States.
While the buyout is slated for a 2026 completion, the companies said the accompanying air and ocean freight agreements will roll out in phases between now and 2028.
