CEVA Logistics continues its Africa expansion
With acquisition of Spedag Interfreight, CEVA Logistics is now present in 44 countries in Africa
As part of its strategic growth plan, CEVA Logistics on Wednesday announced that it has closed the acquisition of Spedag Interfreight, an international freight forwarding expert covering several countries in East Africa.
The announcement was made after finalising all customary closing conditions, including receiving regulatory approvals by relevant authorities. CEVA purchased the logistics entity from the M+R Spedag Group, a family-owned transport and logistics company headquartered in Switzerland.
Mathieu Friedberg, chief executive officer, CEVA Logistics, said, "With the addition of Spedag Interfreight in East Africa, we are continuing to execute key regional initiatives in our strategic growth plan. This acquisition is the perfect follow-on to our organic growth and M&A activity in Africa over the past two years, as well as the recent acquisitions of Ingram Micro CLS and Colis Privé. Our global scale allows us to offer a wide range of responsive logistics solutions thanks to our experienced local teams."
Spedag Interfreight is one of the most competent and reliable logistics providers in East Africa with dedicated industry teams possessing leading expertise in relevant market verticals including energy and infrastructure, aid and relief, oil and gas, and commodities. Approximately 400 employees at 24 locations in Kenya, Uganda, Tanzania, Rwanda and South Sudan have joined CEVA as a result of the transaction's closing.
With this, CEVA Logistics attempts to extend its global reach and local know-how.
According to the company, it remains committed to a "think global, act local" growth strategy by adding Spedag Interfreight's local market understanding to CEVA's global network. The acquisition further supports CEVA's global end-to-end logistics capabilities. CEVA Logistics is now present in altogether 44 countries in Africa.
The company's ambition is to make the African market account for a significant share of its revenue by 2025, and for this Spedag Interfreight will open new opportunities to the growth potential in East Africa. For example, Kenya acts as a key maritime gateway for East Africa. Through a recent expansion and modernization project, the port of Mombasa is expected to move more than 1.7 million TEUs in 2023. The Kenya Ports Authority expects the port to handle 47 million tonnes of cargo by 2032—a 57 percent increase from current levels.
CEVA continues to implement its strategic growth plan under the vision of the CMA CGM Group. With the Group's support, CEVA welcomed more than 20,000 new employees through acquisitions of Ingram Micro's former Commerce & Lifecycle Services business and Colis Privé, France's leading private last-mile provider.
In addition, the CMA CGM Group in April announced that it had signed an agreement to purchase nearly 100% of the capital of GEFCO, the European leader in automotive logistics and an international expert in multimodal supply chain solutions. The European Commission authorized the Group to acquire the capital of GEFCO immediately, pending the final approval.