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CEVA to buy CMA CGM Log, but Sartini likely to run reformed entity
来源： 编辑：编辑部 发布：2018/11/28 09:40:09
ONCE Dutch and now Swiss forwarding major CEVA will partner with French shipping giant CMA CGM to effect the takeover of CMA CGM Log for US$105 million in a move that includes the arrival of CMA CGM vice president Nicolas Sartini as CEVA's new deputy CEO.
Closing of the CMA CGM Log acquisition is expected in the second quarter of 2019 following completion of a Public Tender Offer by CMA CGM for CEVA, reports Fort Lauderdale's Maritime Executive.
Said Mr Sartini: "With the support of 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.
Said CEVA Logistics CEO Xavier Urbain: "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."
Mr Sartini has been appointed CEVA's chief operating officer and deputy CEO as of January. He has been acting as CEO of APL since CMA CGM's takeover of APL in June 2016. As APL chief executive Mr Sartini has been instrumental to the quick turnaround of APL between 2016 and 2018, said Fort Lauderdale's Maritime Executive. Before APL, he held various positions within CMA CGM as Group Senior Vice President. He graduated from the Paris-based Ecole des Hautes Etudes Commerciales business school in 1983.
CEVA has set a 2021 revenue target of over $9 billion, reflecting a five per cent average annual organic growth and a $630 million contribution from CMA CGM Log. CMA CGM Log has 1,200 employees in 32 countries via directly owned entities and has cooperation agreements in 26 additional countries. CMA CGM Log has a significant presence in high growth markets including India, China, Australia and the US.
The integration of CMA CGM Log is expected to give CEVA 170,000 additional controlled TEU, addressing CEVA's target to reach close to one million TEUs and enable expansion of its product offering in the field of sea FCL (full container load) and LCL (less than container load), customs clearance, carrier haulage and air freight forwarding.
The group made a pre-announcement of a public tender offer for CEVA Logistics this week. CMA CGM has been CEVA Logistics' reference shareholder since its listing on the SIX stock exchange in May 2018. At present, CMA CGM owns a non-controlling 33 stake in CEVA Logistics.
CEVA plans to create a stronger footprint in ocean freight management while remaining an independent and standalone listed company. Cross selling with CMA CGM will see CEVA focus on the value-add segments like cold chain logistics and LCL, develop fast-growing sectors (e-commerce, retail) organically and penetrate new geographic areas with strong growth potential in Asia, the Middle East and Africa.
CEVA expects to leverage CMA CGM's overall platform to realise efficiency improvements. Back-office functions synergies have been already identified, including savings on current outsourcing contracts, transfer of functions to shared service centre and more efficient billing and cash collection. On the procurement side, savings on services and consumables are also expected to contribute to savings.
The revised management expectations rely on the following three key initiatives: Accelerate CEVA's transformation by leveraging CMA CGM's operational and commercial expertise and benefit from cross-selling opportunities; leverage CMA CGM's platform to generate cost efficiencies in terms of back-office optimisation; and acquire CMA CGM's freight management activities to boost CEVA's ocean freight management capabilities.
Management expects that these key initiatives will generate an adjusted Ebitda in the range of $470 to 490 million by 2021.
CEVA also plans to cross-sell with CMA CGM, focus on the value-add segments like cold chain logistics and less-than-container-load (LCL), develop the e-commerce and retail sectors organically and enter new markets in Asia, the Middle East and Africa.
CEVA expects to leverage CMA CGM's overall platform to realize efficiency improvements. Back-office functions synergies have been already identified, including savings on current outsourcing contracts, transfer of functions to shared service centre and more efficient billing and cash collection.
Closing of the CMA CGM Log acquisition is expected in the second quarter of 2019 following completion of a Public Tender Offer by CMA CGM for CEVA, reports Fort Lauderdale's Maritime Executive.
Said Mr Sartini: "With the support of 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.
Said CEVA Logistics CEO Xavier Urbain: "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."
Mr Sartini has been appointed CEVA's chief operating officer and deputy CEO as of January. He has been acting as CEO of APL since CMA CGM's takeover of APL in June 2016. As APL chief executive Mr Sartini has been instrumental to the quick turnaround of APL between 2016 and 2018, said Fort Lauderdale's Maritime Executive. Before APL, he held various positions within CMA CGM as Group Senior Vice President. He graduated from the Paris-based Ecole des Hautes Etudes Commerciales business school in 1983.
CEVA has set a 2021 revenue target of over $9 billion, reflecting a five per cent average annual organic growth and a $630 million contribution from CMA CGM Log. CMA CGM Log has 1,200 employees in 32 countries via directly owned entities and has cooperation agreements in 26 additional countries. CMA CGM Log has a significant presence in high growth markets including India, China, Australia and the US.
The integration of CMA CGM Log is expected to give CEVA 170,000 additional controlled TEU, addressing CEVA's target to reach close to one million TEUs and enable expansion of its product offering in the field of sea FCL (full container load) and LCL (less than container load), customs clearance, carrier haulage and air freight forwarding.
The group made a pre-announcement of a public tender offer for CEVA Logistics this week. CMA CGM has been CEVA Logistics' reference shareholder since its listing on the SIX stock exchange in May 2018. At present, CMA CGM owns a non-controlling 33 stake in CEVA Logistics.
CEVA plans to create a stronger footprint in ocean freight management while remaining an independent and standalone listed company. Cross selling with CMA CGM will see CEVA focus on the value-add segments like cold chain logistics and LCL, develop fast-growing sectors (e-commerce, retail) organically and penetrate new geographic areas with strong growth potential in Asia, the Middle East and Africa.
CEVA expects to leverage CMA CGM's overall platform to realise efficiency improvements. Back-office functions synergies have been already identified, including savings on current outsourcing contracts, transfer of functions to shared service centre and more efficient billing and cash collection. On the procurement side, savings on services and consumables are also expected to contribute to savings.
The revised management expectations rely on the following three key initiatives: Accelerate CEVA's transformation by leveraging CMA CGM's operational and commercial expertise and benefit from cross-selling opportunities; leverage CMA CGM's platform to generate cost efficiencies in terms of back-office optimisation; and acquire CMA CGM's freight management activities to boost CEVA's ocean freight management capabilities.
Management expects that these key initiatives will generate an adjusted Ebitda in the range of $470 to 490 million by 2021.
CEVA also plans to cross-sell with CMA CGM, focus on the value-add segments like cold chain logistics and less-than-container-load (LCL), develop the e-commerce and retail sectors organically and enter new markets in Asia, the Middle East and Africa.
CEVA expects to leverage CMA CGM's overall platform to realize efficiency improvements. Back-office functions synergies have been already identified, including savings on current outsourcing contracts, transfer of functions to shared service centre and more efficient billing and cash collection.