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Ceva Logistics plans to raise $1.35bn through Swiss IPO

LBR Staff Writer Published 10 April 2018

Supply chain management firm Ceva Logistics has unveiled plans to raise about CHF1.3bn ($1.35bn) via an initial public offering (IPO) on SIX Swiss Exchange.

Subject to market conditions, the company intends to conduct IPO in the second quarter of this year.

Ceva will use the proceeds to repay debt to deleverage the balance sheet to below 3x net debt/adjusted earnings before interest, tax, depreciation and amortization (EBITDA).

In connection with the proposed IPO, CEVA Holdings LLC shall be combined with CEVA Logistics AG to create the new holding company.

Ceva will also elect new board of directors, which will be headed by Rolf Watter, who is a partner in the Swiss law firm Bär & Karrer. The board includes existing and new customers.

Based on the dividend policy to be determined by the new board, Ceva is planning to pay a dividend to shareholders for the 2018 financial year.

The current principal shareholders of the company, including Capital Research and Management Company, Franklin Advisors and Apollo Global Management, will remain invested in the company after the IPO.

Ceva CEO Xavier Urbain said: “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.”

In 2007, Ceva was established through combining contract logistics business of TNT Logistics and the freight management business of Eagle Global Logistics.

Based in Baar of Switzerland, Ceva offers a range of services in both contract logistics and freight management segments.

The firm’s contract logistics services include warehousing, distribution and value-added services, while freight management services include air, ocean, ground and customs brokerage.

Image: Ceva Logistics to conduct IPO on SIX Swiss Exchange. Photo: courtesy of CEVA Logistics.