Third party logistics provider (3PL) heavyweight CEVA Logistics has acquired an omnichannel contract logistics provider in Mumbai in a move to nearly triple its footprint in India, the firm said today.
CEVA, the French 3PL which is a unit of maritime container giant CMA CGM Group, said it had agreed to acquire 96% of Mumbai-based Stellar Value Chain Solutions (Stellar VCS) from an affiliate of private equity firm Warburg Pincus and other shareholders.
Started in 2016 by Anshuman Singh, Stellar Value Chain Solutions provides contract logistics services with omnichannel fulfillment services in the e-commerce, automotive, food products, consumer, fashion and retail, and healthcare and pharmaceuticals market segments.
Terms of the deal were not disclosed, but the firms said that Singh will continue driving his business following the acquisition.
CEVA’s Indian contract logistics operations currently consist of 2.7 million square feet of space at 75 locations across 35 cities in India. Through this deal, it will greatly increase that footprint by adding 7.7 million square feet of space across more than 70 facilities in 21 cities across India. CEVA also gains nearly 8,000 Stellar employees, providing a jump in scale in local expertise.
The deal is also expected to benefit CEVA’s freight management and customs business in the region. With new manufacturing trends and supply chain routes developing, CEVA’s global network and wide range of logistics solutions provides its APAC clients with the agility needed to navigate changing market conditions.
“With the addition of Stellar VCS, we will continue our strategic growth with the goal of becoming a Top 5 global logistics player,” CEVA CEO Mathieu Friedberg said in a release. “We are expanding into more key market segments and boosting our presence in this strategic country. 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.”