France-based CEVA Logistics has signed a pact with third-party logistics firm Stellar Value Chain Solutions for acquiring a controlling stake in the company, a statement said on Monday.
The move under which CEVA will acquire the entire stake of private equity firm Warburg Pincus will help it diversify its presence in India.
This will, in turn, boost its local workforce, assets, customer roster and capabilities, Stellar Value Chain said in a statement.
The acquisition is expected to be completed in the coming weeks, the company said without disclosing the deal size.
Incorporated in 2016 by logistics veteran Anshuman Singh, Stellar Value Chain Solutions is into contract logistics with omni-channel fulfilment services in segments such as e-commerce, automotive, consumer, retail, healthcare and pharmaceuticals, among others.
"Warburg Pincus has been an extremely supportive partner in building this company right from its inception. It is now passing on the baton to another global giant, CEVA Logistics, to take this company ahead," said Anshuman Singh, Chairman and Managing Director of Stellar Value Chain Solutions.
"The team from both the companies will allow for a quick integration and new, global opportunities for our associates."
Post-acquisition, Stellar Value Chain Solutions will become part of the third largest company in the world in contract logistics, the company said.
Anshuman Singh will continue driving this business following the acquisition.
As part of the deal, CEVA will acquire approximately 7.5-million square feet of carpet area (approximately 15 million sq ft of total logistics area) of Stellar Value Chain Solutions across more than 70 facilities in 21 cities across India, it said.
In addition, CEVA will inherit the Stellar's workforce of nearly 8,000 full-time and temporary employees, the company said.
CEVA Logistics in India is currently present in 75 locations across 35 cities with approximately 27,00,000 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, Stellar Value Chain Solutions said.
In addition to India, it said, the acquisition complements recent growth in CEVA's contract logistics business elsewhere in the Asia Pacific region.
"With the addition of Stellar VCS, we will continue our strategic growth with the goal of becoming a top 5 global logistics player. We are expanding into more key market segments and boosting our presence in this strategic country," said Mathieu Friedberg, Chief Executive Officer, CEVA Logistics.
Stellar has an important network of contract logistics facilities across India and a top roster of customers. Bringing on their expertise and footprint in India is a major step forward for CEVA Logistics, he added.
Moreover, the deal is also expected to benefit CEVA's freight management and customs business in the region, the company said.
At the same time, with new manufacturing trends and supply chain routes developing, CEVA's global network and wide range of logistics solutions provide its APAC clients with the agility needed to navigate changing market conditions, the company said.
