CEVA Logistics AG, which recently launched a strategic partnership with French ocean carrier CMA CGM, has announced its revised plan to accelerate top-line growth and improve profitability.
In addition to this, CEVA has acquired CMA CGM’s freight management business CMA CGM Log for $105 million, which is expected to provide a $630 million boost to the company’s revenue by 2021.
According to a statement, CMA CGM Log has a significant presence in high growth markets such as India, China, Australia and the US.
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The integration of CMA CGM Log into CEVA’s Freight Management Business line is expected to reinforce CEVA's Ocean Freight Management footprint, the company now controlling an additional 170,000 TEU.
As a result, CEVA has upgraded its 2021 management expectations from an EBITDA of $380 million to $470-490 million, which it hopes to achieve with the support of CMA CGM's corporate transformation expertise.
Xavier Urbain, CEO of CEVA Logistics, commented: “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.”
CEVA Logistics upgrades its 2021 expectations. Strategic partnership with CMA CGM – Acquisition of CMA CGM Log https://t.co/rd8bRUCNVH
— CEVA Logistics (@cevalogistics) November 26, 2018
“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 has also announced the appointment of Nicolas Sartini as the company’s Chief Operating Officer and Deputy CEO, citing his experience of transforming APL between 2016 and 2018.
Urbain said: “I am very happy to welcome Nicolas who has successfully turned around the APL shipping company as my Deputy and COO.”
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