London headquartered CEVA Logistics recently announced a strategic plan to accelerate the value creation for all their stakeholders. The France-based shipping company CMA CGM has given their full support to the new plan.
The substantial value creation will benefit the shareholders of CEVA as a result of this new strategic partnership. For any shareholder that wishes to remove their CEVA Logistics investments, CMA CGM has made today a pre-announcement of a public tender offer for CEVA Logistics.
CEVA Logistics will use three key levers in this strategic partnership to accelerate top-line growth and improve profitability.
The three key levers are:
- Accelerating CEVA’s transformation through commercial initiatives and cross-selling, a new and simplified matrix organization and strengthened management team as well as a stronger focus on profitability improvements and an upgrade and standardization of processes and IT architecture.
- Strengthening CEVA’s Freight Management business through the acquisition of CMA CGM’s freight management activities (CCLog), following the settlement of the public tender offer
- Leveraging CMA CGM ocean carrier platform to generate cost efficiencies, in terms of back-office functions
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.”
CEVA will continue as a standalone and independent listed company, the partnership is aligned with the shipping company’s overall strategy to offer end-to-end logistics solutions to their customers, continuing the development of integrated logistics solutions, while overseeing and enhancing the business relationship with CEVA.
CMA CGM Chairman and Chief Executive Officer, Rodolphe Saadé said, “We are convinced of CEVA’s potential. This industrial project will make it possible to speed-up its transformation and to make it a more proficient leader of logistic, to the benefit of its clients, its employees and its shareholders. We are eager to work alongside all CEVA’s teams. Combined with their expertise and commitment, this strategic partnership will guarantee CEVA’s independence, and will represent a new era in CEVA’s history.”