The CMA CGM shipping company is about to acquire an equity stake of nearly 25 per cent of Ceva Logistics. CMA CGM has committed to subscribe for mandatory convertible securities of Ceva in an estimated amount between 380 and 450 million CHF (EUR 316 – 375 million). “These securities will be convertible into CEVA common shares subject to obtaining all required regulatory approvals,“ the container shipping company informs.
With this transaction, CMA CGM aims to grow its presence in the logistics sector, a business closely related to shipping. This equity investment takes place in connection with Ceva’s planned initial public offering, announced on 20th April 2018, and remains conditioned upon its successful completion.
A global leader in logistics and with more than 56,000 employees and temporary/agency workers in 160 countries, Ceva posted revenues of over USD 7 billion in 2017 (EUR 5.7 billion). The company is specialising in contract logistics, providing end-to-end supply chain solutions, and managing more than 9 million m² of warehouses at more than 750 sites in the world. It is also ranked 10th in the world in freight forwarding, with a strong footprint in Asia. Its long-standing blue-chip customer base includes leading players in the automobile, consumer & retail (including e-commerce), industrial & aerospace, technology and healthcare sectors.
Following this equity investment, CMA CGM will nominate two members of Ceva’s Board of Directors. The two companies have agreed to explore potential opportunities to work together towards the development of joint commercial offerings, according to terms that will be defined in the coming months.
Commenting on the proposed transaction, Rodolphe Saadé, Chairman and CEO of CMA CGM stated: “With this proposed investment in Ceva, CMA CGM makes a significant move, in line with its development strategy. Together, the two companies will also explore possible cooperation allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.“
CMA-CGM, founded by Jacques R. Saadé, is a globally leading container shipping group, with 504 vessels calling more than 420 ports worldwide. In 2017 CMA CGM carried 19 million TEU. Being present in 160 countries through 755 agencies, the group employs 30,000 people around the globe, 2,400 of them at their headquarters in Marseille.