CEVA Logistics Set to Expand Indian Footprint by Acquiring Stellar Value Chain Solutions

Acquisition Overview

CEVA Logistics, headquartered in France, has entered into an agreement to obtain a majority share in the logistics firm, Stellar Value Chain Solutions. This monumental deal will involve the purchase of the complete stake held by the private equity company, Warburg Pincus.

Rationale Behind the Move

CEVA Logistics aims to expand its operations in the Indian subcontinent through this strategic acquisition. This will significantly amplify their local assets, employees, customer base, and overall capability. Stellar Value Chain Solutions emphasized that this move positions CEVA Logistics for more comprehensive reach and diversification in the region.

About Stellar Value Chain Solutions

Established in 2016 by logistics maestro, Anshuman Singh, Stellar Value Chain Solutions specializes in contract logistics. They offer omni-channel fulfillment services spanning multiple sectors, including e-commerce, automotive, retail, healthcare, and pharmaceuticals, among others.

Implications of the Acquisition

Once the acquisition process concludes, which is anticipated to occur in the forthcoming weeks (with the exact value of the deal kept confidential), Stellar Value Chain Solutions will join ranks as a segment of the third biggest global enterprise in contract logistics.

Moreover, Anshuman Singh will retain his shares in the company and continue spearheading the firm in his role as the CEO.

Details of the Transaction

The acquisition involves CEVA Logistics taking over roughly 7.5 million sq ft of carpet space, equivalent to nearly 15 million sq ft of the total logistics space from Stellar Value Chain Solutions. This vast area encompasses over 70 establishments situated in 21 cities throughout India.

Furthermore, CEVA Logistics will incorporate Stellar’s robust workforce, which consists of approximately 8,000 permanent and contractual staff members.

Conclusion

This acquisition marks a significant milestone for CEVA Logistics in enhancing its operations and reach within the Indian market. The combined strength of both companies is poised to offer unparalleled logistics solutions in the region.