By Freddy Sebastian
French shipping company CMA CGM agreed to acquire FedEx Supply Chain for $1.4 billion, including debt.
Following the deal, the companies will enter into multiyear commercial agreements related to air and ocean freight, they said.
CMA CGM will offer ocean transport and carrier services under a nonexclusive agreement with FedEx and the companies will also work together on select air-cargo capacity solutions.
Overall, the combined entity would operate about 150 warehouses, expanding the overall presence of CMA CGM subsidiary CEVA Logistics in North America to a combined workforce of 20,000 people located at more than 240 locations.
The deal is slated to close this year, subject to customary approvals. The air cargo and ocean freight agreements are expected to begin in different phases through 2028.
FedEx Supply Chain was previously known as Genco and acquired by FedEx in 2015. The company specializes in fulfillment, distribution, warehousing and transportation management.
Write to Freddy Sebastian at freddy.sebastian@wsj.com