Today, CEVA Logistics said that it has inked a contract to buy 96% of Mumbai-based Stellar Value Chain Solutions from a Warburg Pincus subsidiary and other shareholders.
It would enable CEVA diversify its position in India by acquiring the whole interest of the private equity company Warburg Pincus.
In turn, this will improve its local staff, assets, clientele, and skills, according to a statement from Stellar Value Chain.
The business said that the purchase is anticipated to close in the next weeks without providing financial details of the transaction.
Anshuman Singh, a seasoned logistics professional, founded Stellar Value Chain Solutions in 2016. The company specializes in contract logistics and omni-channel fulfilment services for industries like e-commerce, automotive, consumer, retail, healthcare, and pharmaceuticals.
“Right from the start, Warburg Pincus has been a very helpful partner in creating our firm. According to Anshuman Singh, chairman and managing director of Stellar Value Chain Solutions, the firm is now handing the reins over to CEVA Logistics, another worldwide behemoth, to lead this business forward.
“Our associates will benefit from a quick integration and new, international opportunities thanks to the team from both companies.”
Following the purchase, Stellar Value Chain Solutions will join the third-largest organization in the world for contract logistics, according to the business.
The firm will still be run by Anshuman Singh after the purchase.
As part of the agreement, CEVA would purchase from Stellar Value Chain Solutions around 7.5 million square feet of carpet space (or roughly 15 million square feet of total logistical space) spread over more than 70 sites in 21 Indian cities, the company stated.
Additionally, the almost 8,000 full-time and contract staff employed by the Stellar will be transferred to CEVA, the business stated.
Present at 75 sites across 35 cities in India, CEVA Logistics has a total of over 27,00,000 square feet of warehouse space.
According to Stellar Value Chain Solutions, CEVA Logistics will become a far more powerful participant in the Indian contract logistics market as a result of the purchase, providing its new clients with access to global experience, improved operational efficiency, and innovative solutions.
The purchase, it was said, completes recent expansion in CEVA’s contract logistics sector elsewhere in the Asia Pacific area in addition to India.
“With Stellar VCS on board, we’ll keep up our strategic expansion and work for our top-5 ranking in the logistics industry. According to Mathieu Friedberg, CEO of CEVA Logistics, “We are increasing our footprint in this vital nation and diversifying into more important business categories.
Stellar has a distinguished clientele and a significant network of contract logistics facilities spread across India. He said that adding their experience and presence in India is a significant step forward for CEVA Logistics.
The acquisition is also anticipated to help CEVA’s regional freight management and customs operations, the firm added.
CEVA’s worldwide network and broad variety of logistics solutions, the firm claimed, provide its APAC customers the flexibility required to manage shifting market circumstances as new production trends and supply chain routes evolve.