Ceva Logistics yesterday announced its intention to conduct an initial public offering (IPO) and to list its shares on SIX Swiss Exchange. The proposed IPO is expected to consist of an all primary offering in the amount of approximately CHF 1.3 billion. The objective of the IPO is to accelerate the execution of the Company’s growth and margin expansion strategy by strengthening the balance sheet. Ceva expects to list in the second quarter of 2018, subject to market conditions.
Xavier Urbain, CEO of Ceva says: “Our global presence, end-to-end service offering in contract logistics and freight forwarding, our balanced blue-chip customer portfolio and our strong capabilities make Ceva stand-out among third-party logistics providers. Our improving financial results and new business wins are confirmation of the successful execution of our strategy to establish Ceva as one of the global leaders in the asset-light logistics industry.”
Ceva Logistics was established in 2007 by the combination of the contract logistics business of TNT Logistics and the freight management business of Eagle Global Logistics. The company is incorporated in Baar, Switzerland, where most of the executive management is based.
Ceva is one of the world’s leading third-party logistics companies and offers a broad spectrum of services in both Contract Logistics (Warehousing, Distribution, Value-Added Services), where it is No. 5 worldwide, and Freight Management (Air, Ocean, Ground, Customs Brokerage, other), ranking No. 10. In 2017, the Company generated revenues of USD 7.0 billion (EUR 5.7 billion) with over 56,000 employees and temporary/agency workers in more than 1,000 locations.
Ceva covers 160 countries with balanced coverage and significant exposure to high-growth markets – Asia Pacific accounted for 26% of revenues in 2017, the Americas for 33% and Europe, Middle East and Africa for 40%. It serves a diversified blue-chip customer base across logistically intensive industry verticals. Consumer and Retail, including e-commerce, generated 29% of revenues in 2017, Automotive 25%, Industrial and Aerospace 22% and Technology 15%.
Ceva’s target markets are expected to continue to grow above GDP in the future, driven by structural trends such as outsourcing of logistics activities, e-commerce and growing middle-classes in emerging markets. The company is well positioned to profit from these trends. In addition, the fragmented nature of the provider landscape should give integrated players such as Ceva the opportunity to gain market share and to actively participate in market consolidation.
The intended IPO in the amount of approximately CHF 1.3 billion will consist of an all primary offering to institutional and retail investors in Switzerland and to certain qualified institutional investors in various other jurisdictions. Credit Suisse and Morgan Stanley are acting as Joint Global Coordinators and Joint Bookrunners for the planned IPO. Deutsche Bank, UBS and Berenberg are acting as Joint Bookrunners, HSBC and Vontobel as Co-Bookrunners (collectively, the “Managers”) and Rothschild as independent IPO adviser.