CEVA buys CMA CGM’s freight management unit
Nicolas Sartini will take on the task of integrating CMA CGM’s logistics business into CEVA
APL’S chief executive Nicolas Sartini is to join CEVA Logistics as chief operating officer and deputy chief executive as part of several moves that will see the Switzerland-listed logistics operator acquire CMA CGM’s freight management business. A long-serving executive at the French liner company, he was appointed chief executive of APL when it was acquired by CMA CGM in 2016 and was responsible for what is widely regarded as a successful transformation of the company.
In its updated strategy plan, CEVA said it would acquire CMA CGM Log, subject to regulatory approval, for $105 million, with the deal set to close in the second quarter of 2019.
CEVA said the integration of CMA CGM Log into CEVA’s freight management business line was expected to significantly reinforce its footprint in ocean freight management, with 170,000 additional controlled TEUs, and would result in significant cost synergies.
Meanwhile, CMA CGM has published its pre-announcement for a public tender offer on CEVA shares to investors who wish to divest their stake in the company. The French company is offering shareholders $30.10 per share, a 46% premium to the volume-weighted average share price of CEVA Logistics shares on the SIX Swiss Exchange during the 60 trading days prior to October 1.
CMA CGM acquired a 24.99% stake in CEVA when the Netherlands-based company listed on the Swiss stock exchange in May. It has since boosted its holding to a non-controlling 33%.
In its revised strategic plan, CEVA included three key levers to accelerate top-line growth and improve profitability: the launch of a strategic partnership with CMA CGM and the 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 has been on a transformation journey since 2014 with a commitment to strengthening its approach to new business development, transform its IT infrastructure and improve the company’s operational performance and productivity through increased standardization and streamlined processes. At the time of the IPO, CEVA had been halfway through this journey and has continuously been pursuing these actions since. The strategic partnership with CMA CGM now opens up significant opportunities to accomplish this journey more rapidly, secure a more robust execution and take advantage of CMA CGM’s customer base and turnaround expertise. Combination of CMA CGM’s and CEVA’s expertise in corporate transformations is due to deliver faster and more sustainable efficiency