French liner heavyweight CMA CGM has committed to purchasing Bolloré Group’s transport and logistics operations – Bolloré Logistics.
CMA CGM said that it has granted ‘ a put option’ to Bollore Group to sell Bollore Logistics after exclusive negotiations announced on April 18, which the latter accepted. The group said in April that CMA CGM’s offer was made on the basis of a €5 billion cash-free/debt-free enterprise value.
However, in its latest update Bolloré Group said that as a result of adjustments agreed between the parties, the purchase price would amount to 4.650 billion euros, prior to calculating debt and cash on the completion date.
Final completion of the transaction remains subject to the examination by employee representation, and then to customary regulatory approvals.
CMA CGM explained that the combined operations of its logistics activities and Bolloré Logistics would have combined revenues of approximately $ 24 billion (based on 2022 results).
Following the acquisitions of Ingram Micro Commerce & Lifecycle Services and Colis Privé, then of GEFCO, which boosted CEVA’s capabilities in eCommerce contract logistics and automotive logistics respectively, the acquisition of Bolloré Logistics would further strengthen the sea and air freight activities of the group’s logistics division. The combined entity would have an annual shipping volume equivalent to more than 2 million TEUs of sea freight and 0.8 million tons of air freight.
This deal would add more than 14,000 new employees operating out of 350 offices in 63 different countries to CMA CGM’s existing 155,000 employees.
CMA CGM’s warehouse space would increase by more than 900,000 square meters at 115 different warehouses, in addition to the 10.3 million square meters already managed by CEVA at its 900 warehouses around the world. The acquisition would also open up access to major logistics hubs, especially in France and Asia.
“With the addition of Bolloré Logistics, the CMA CGM Group and its subsidiary, CEVA Logistics, would gain further expertise in high-value sectors, both in sea and air freight management and in contract logistics. Bolloré Logistics is currently a world leader in transport and logistics solutions for the luxury goods, fragrances and cosmetics, healthcare, aerospace and defense sectors,” CMA CGM said.
“The experts set to join the CMA CGM Group have built up a roster of top-tier customers, including some of the top names in French industry and other leading multinationals, which CEVA Logistics would strive to continue serving.”
The deal would be the largest since the CMA CGM Group was founded in 1978 and would represent a major strategic milestone in the group’s development of its logistics activities, which CMA CGM has been building since 2019, alongside the original CMA CGM shipping business.