Ceva Logistics is getting a major new shareholder to go along with a planned initial public stock offering of stock.
Ocean shipping giant CMA CGM Group agreed to acquire a 25% stake in Ceva Logistics through the purchase of bonds that will be converted into stock when shares of the Hoofddorp, The Netherlands-based company begin trading on the Swiss stock market in May.
The value of the investment is estimated to be between 380 million and 450 million Swiss francs, or roughly $463 million.
CMA CGM Group ranks No. 10 on the Transport Topics Top 50 list of largest global freight carriers. The Paris-based company operates globally with a fleet of 445 vessels and more than 56,000 employees.
Ceva Logistics is one of the world’s largest providers of contract logistics services, generating $7 billion in revenue in 2017 and managing more than 9 million square feet of warehousing space in 170 countries. The company ranks No. 13 on Transport Topics’ Top 50 list of largest logistics companies in North America.
Rodolphe Saade, CEO of the CMA CGM Group, said the link up with Ceva is in line with the company’s development strategy.
“Ceva is a major player in the logistics business, which is closely related to the shipping industry,” Saade said in a statement released April 20. “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.”
Jochen Eckel/Bloomberg News
CMA CGM, which is controlled by the Saade family, acquired Singapore-based APL line in 2016 and was part of last year’s launch of vessel-sharing partnership Ocean Alliance with Asian firms.
Ceva was established in 2007 through a merger of TNT Logistics in Holland and U.S.-based freight forwarder Eagle Global Logistics.
As part of the planned IPO, Ceva is selling 29.9 million shares of stock to the public at a projected offering price of between 27.50 and 52.50 Swiss francs per share, representing about 15% of the total shares outstanding.