CEVA Logistics has acquired CMA CGM’s freight management activities for $105 million as part of a strategic partnership and expects to close the deal in the second quarter of 2019.
CMA CGM is a major shareholder in CEVA and in October, it increased its stake from 24.99 per cent to 33 per cent of the company shares.
CEVA Logistics has also upgraded its 2021 expectations and is targeting revenue above $9 billion, reflecting a five per cent average annual organic growth including a contribution of $630 million from the CMA CGM acquisition.
The logistics and freight company said its revised strategic plan includes three key levers to “accelerate top-line growth and improve profitability” – focused primarily on an intensified relationship with CMA CGM.
These are the launch of a strategic partnership with CMA CGM and acceleration of turnaround efforts with the support of CMA CGM’s corporate transformation expertise, the leveraging of the CMA CGM’s overall platform to accelerate revenue growth, and the acquisition of CMA CGM’s freight management activities.
CEVA Logistics has also appointed Nicolas Sartini as chief operating officer and deputy chief executive officer (CEO) and he will take over on 1 January, 2019. Sartini has been acting as CEO of APL since CMA CGM’s takeover of APL in June 2016.
CEVA Logistics CEO, Xavier Urbain said: “With the support of our strategic partner CMA CGM, I am proud to open a new chapter for CEVA Logistics and announce that we can accelerate our transformation and turnaround action plan in the next three years and beyond.
“This can be achieved by a combination of our commercial and sales focus, cross selling with CMA CGM customers, our own productivity actions, the integration of CMA CGM Log within CEVA and sharing resources with CMA CGM in the field of procurement and administrative functions.
“I am very happy to welcome Nicolas who has successfully turned around the APL shipping company as my Deputy and COO.”