France-based CEVA Logistics will acquire private equity firm Warburg Pincus’ 92 per cent stake in India’s Stellar Value Chain Solutions, making the Indian company part of the $75-billion CMA CGM a global shipping and logistics group.
Stellar Value Chain’s founder Anshuman Singh told businessline that Warburg Pincus had been one of their early investors, pumping in over $100 million. It was exiting the company after having been a major investor for around seven years.
CEVA Logistics, part of a global conglomerate, has the distinction of providing logistics support services for Scuderia Ferrari’s presence at Formula One events and other racing series.
Global league
Singh said the acquisition by CEVA would catapult the Indian third-party logistics player into the global league. He added that he would continue to hold a minority stake for now but did not rule out exiting the company after a couple of years.
The French company will be acquiring Stellar Value Chian’s 15 million square feet of logistics area across more than 70 facilities in 21 cities.
Warehouse space
CEVA Logistics in India is currently present in 75 locations across 35 cities with approximately 2.7 million square feet of warehouse space. “With the acquisition, CEVA Logistics would become a much stronger player in Indian contract logistics space, offering its new customers global expertise and increased operational efficiency and innovation,” a statement said.
With Stellar Value Chain’s facilities it can expand its freight management and customs business in the Asia Pacific region.