CMA CGM to acquire 25% stake in CEVA Logistics, worth up to $462mn
CMA CGM has committed to subscribe for mandatory convert...
The shipping firm CMA CGM has reached an agreement to acquire almost 25% of CEVA Logistics AG.
CMA CGM has committed to subscribe for mandatory convertible securities of CEVA in an estimated amount between $389.8mn and $461.65 million CHF.
These securities will be convertible into CEVA common shares subject to obtaining all required regulatory approvals.
With this transaction, CMA CGM aims to grow its presence in the logistics sector, a business closely related to shipping. A global leader in logistics and with more than 56,000 employees and temporary/agency workers in 160 countries, CEVA posted revenues of over 7 billion dollars in 2017.
CEVA is the number five player in contract logistics, providing end-to-end supply chain solutions, and managing more than 9 million sqm. of warehouses in 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 and retail (including e-commerce), industrial and aerospace, technology and healthcare sectors.
Following this equity investment, CMA CGM will nominate two members of CEVA’s Board of Directors.
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. 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.”