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 and carrier services under a non-exclusive agreement. The companies will also work together on select air cargo capacity solutions to enhance their respective global networks, increase aircraft utilization and provide more flexible shipping options.
FedEx recently signed a memorandum of understanding with China Southern Airlines to also collaborate on air cargo transportation.
The air cargo and ocean freight agreements are expected to commence in different phases between now and 2028.
FedEx Supply Chain is a small part of FedEx, making up less than 2% of its consolidated annual revenue. FedEx will now focus on its freight transportation and parcel delivery services. The news follows FedEx’s spin-off of FedEx Freight, its less-than-truckload business, on June 1.
“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. By streamlining our portfolio, FedEx is better positioned to execute our long-term vision and continue to serve as the heartbeat of the industrial economy, delivering unmatched connectivity, reliability, and value to our customers globally,” said CEO Raj Subramaniam in a news release.
FedEx Supply Chain has about 10,000 employees across 80 facilities, with about 34 million square feet under management for 130 customers. The division, which was created with the acquisition of Genco Logistics in 2015, provides a comprehensive range of integrated logistics services for retailers and manufacturers, including inbound logistics, warehousing and distribution, fulfillment, contract packaging and product configuration, systems integration, returns process and disposition, test, repair, refurbishment, and product liquidation.
The transaction is subject to routine regulatory approvals.
“The acquisition and partnership with FedEx represent a major step in the development of Ceva Logistics and our logistics activities in North America. We are strengthening our ability to provide customers with integrated supply chain solutions. These deals also reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain,” said Rodolphe Saadé, chairman and CEO of CMA CGM.
In March 2025, Saadé said his company would invest in building up its warehouse and logistics reach in the United States. The statement, made in conjunction with a White House visit, was part of a broader promise to expand shipping and air cargo business in the U.S. at a time when President Donald Trump was threatening to limit market access to foreign companies over complaints about unfair trade practices.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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