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CMA CGM to acquire 25% stake in Ceva Logistics

Published 23 April 2018

CMA CGM, a French container transportation and shipping company, has signed an agreement to purchase up to 25% stake in supply chain management firm Ceva Logistics.

The French firm said it is committed to assume convertible securities of Ceva, which will be valued between CHF380m ($389m) and CHF450m ($461m).

The equity investment will happen in connection with Ceva’s planned initial public offering on the SIX Swiss Exchange.

CMA CGM will add two members to Ceva’s board of directors following the equity investment.

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

With around 56,000 employees in over 160 countries, Ceva offers supply chain solutions to the large and medium-size national and multinational companies.

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

With over 9 million m² of space more than 750 sites, the company serves customers in the automotive, consumer and retail, energy, healthcare, industrial and aerospace and technology sectors.

The deal is subject to the completion of Ceva’s IPO and approval from regulatory authorities.

CMA CGM chairman and CEO Rodolphe Saadé said: “CEVA is a major player in the logistics business, which is closely related to the shipping industry.

“Together, the two companies will also explore possible cooperations allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport.”

Earlier this month, Ceva unveiled plans to raise about CHF1.3bn ($1.35bn) via an initial public offering (IPO) on SIX Swiss Exchange.

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).

With a diversified fleet of 504 vessels, CMA CGM is said to serve more than 420 of the world's 521 commercial ports.

Image: CMA CGM to acquire interest in supply chain management firm Ceva Logistics. Photo: courtesy of CEVA Logistics.