GEFCO, eager to go listed this year, finalizes its Spanish joint venture
Just before Christmas CEO & Chairman Nadal published a letter addressed to investors confirming the French logistics giant formally applied to launch an IPO on 40% shares
As anticipated, GEFCO has applied the compatriot Stock Exchange in order to launch an initial public offering (IPO) at the Paris Euronext in the course of this year; about 40% is to go publicly available, after receiving approval from the Russian government, which controls the company.
The French logistics Group, 75% owned by RZD (Russian Railways) and 25% by car manufacturer Peugeot (PSA), just before Christmas delivered its application to France’s financial authority (AMF) for approval.
It was the same CEO and Chairman of the Management Board, Luc Nadal, to officialise the move through a letter published on a website constructed on purpose for the aim of giving investors key information on GEFCO Group and on its IPO project, that regards a large minority of its stocks.
“The upcoming IPO is a crucial step in our Group’s history, in line with our vision of becoming the global leader in finished vehicles logistics. This ambition is supported by our strong Infinite Proximity™ culture and our new "GEFCO. Partners, unlimited" brand signature. We are driven by a strong desire to push back boundaries for customers and successfully rise to the most demanding supply chain challenges” the French manager explained. “Long-lasting cooperation with partners is the key to shared growth. Drawing inspiration from our experience enables us to build relationships of trust with our shareholders. This financial operation will give us the opportunity to grow faster and achieve results that match our ambition, while increasing the Group’s financial flexibility.
Today, GEFCO Group is the European leader in automotive logistics, the global number one in finished vehicle logistics and a top 10 global partner in multimodal supply chain solutions. Building on 69 years of expertise and a long tradition of excellence in the automotive industry, we design smart, flexible solutions for complex supply chains. We deliver each year 5 million vehicles across 5 continents, 47 countries and 298 destinations worldwide” Nadal concluded.
As declared previously, RZD wishes to reduce its stake under 50%; meanwhile Peugeot PSA – which in 2012 sold 75% in a 800 million euro deal - also is willing to go under 10% considering no more strategic to keep such a relatively large stake; in fact GEFCO, born as in-house logistics division of the French car manufacturer, has been diversifying outside its original vertical market and last year one third of its revenues were from non-automotive areas of business.
As a part of such a diversification and expansion strategy, involving merger and acquisition, the French giant group got into the freight forwarding market after taking over Dutch forwarder IJS for 160 million in 2015. Also, GEFCO is waiting the soon to come final regulatory clearance for its proposed finished vehicle logistics joint-venture with Spanish operator Berge.
In 2017 GEFCO recorded revenues of 4.4 billion euro (+5.1%), ebit of 139 million euro (+22.2%), and margin of 3.1%; while in nine months ending 30 September 2018 revenue grew by 9.8% year on year with an ebit of 123 million representing a 3.5% margin.
Expectations for 2018 are: consolidated revenue of 4.65 billion euro and an ebit of 160 million; during 2019 the company estimates to rise revenues by 4% and ebit to reach 200 million euro.
Spanish deal for national leadership just fixed after EU’s green light
GEFCO and Bergé signed the agreement to create the main finished-vehicle logistics provider
GEFCO and Bergé have announced the signature of the agreement to create Spain’s leading finished-vehicle logistics provider, after the European Commission approved their joint-venture.
The newco BERGÉ GEFCO SL, owned 50%-50% by the two partners, will offer 3.4 million m² storage area for 120,000 vehicles, a fleet of 700 trucks, 100 railcar wagons and 40,000 m² of workshop space.
“This joint-venture will reinforce our leadership on the automotive logistics market” commented Luc Nadal, CEO of GEFCO. “The new company will be well positioned to anticipate market needs in a highly dynamic context, and develop innovative solutions tailored to the needs of our customers, partners and employees.”
“We are very satisfied to have received a green light to start our operations and sign this alliance with GEFCO. We are convinced that it will not only reinforce our leadership in the Spanish finished-vehicle logistics market but also stimulate growth in the sector with innovative services based on the shared expertise of both companies” Jaime Gorbeña, President of BERGÉ y COMPAÑÍA stated.
The new jv company will cover all logistics needs for both new and second-hand vehicles. In the former segment it will be the only provider capable of managing all logistics and commercial services with its own resources. Its solutions for vehicle manufacturers, leasing companies and resellers will include transport, warehousing, technical services, inspections, refurbishments, delivery, trading, sales management (online/auctions/exports), administration, fleet management.