CMA CGM to buy FedEx’s contract logistics unit for $1.4B

CMA CGM has agreed to acquire contract logistics provider FedEx Supply Chain for $1.4 billion, the companies announced Wednesday.

The deal, which is expected to close in 2026, would nearly triple the size of CMA CGM subsidiary CEVA Logistics’ contract logistics operations in North America. FedEx Supply Chain has nearly 10,000 employees, according to the release.

“The combined entity would operate approximately 150 warehouses, expanding CEVA’s overall presence in North America to a combined workforce of 20,000 people located at more than 240 locations,” the release said.

Once the deal is executed, FedEx and CMA CGM also plan to enter into multiyear ocean and air freight agreements, which are slated to commence in different phases between now and 2028. CMA CGM will become FedEx’s preferred ocean carrier under a non-exclusive agreement. The companies will also collaborate “on select air cargo capacity solutions” to improve aircraft utilization and flexibility for long-haul capacity.

“The acquisition and partnership with FedEx represent a major step in the development of CEVA Logistics and our logistics activities in North America,” Rodolphe Saadé, chairman and CEO of the CMA CGM Group, said in the announcement.

FedEx acquired FedEx Supply Chain, formerly known as Genco, in 2015. The news release announcing the deal called Genco one of the largest third-party logistics providers in North America, helping FedEx expand existing service offerings in the retail and e-commerce markets.

Today, FedEx Supply Chain offers a mix of services, including inbound logistics, warehousing, distribution, fulfillment and returns. It supports businesses in a range of industries, including healthcare, technology, retail, consumer and industrial goods. As of May 2025FedEx Supply Chain had about 11,500 employees at nearly 150 facilities.

CMA CGM has had an appetite for acquisitions this year. In April, the container shipping and logistics giant announced a deal to buy distribution company Fattal Group. And in June, CMA CGM revealed a preliminary agreement to acquire aircraft maintenance services provider Crystal Aero Solutions. The company is also strengthening its foothold in the U.S., announcing in 2025 a $20 billion investment into its operations in the country over a four year period.

FedEx, meanwhile, is slimming down. The company spun off its less-than-truckload unitFedEx Freight, last month and is now moving to part with FedEx Supply Chain. The sale of its contract logistics unit enables FedEx to focus more on high-value customer segments such as healthcare, automotive, aerospace and data centers, President and CEO Raj Subramaniam said.

“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,” Subramaniam said.