CMA CGM expands in Turkey with $440m logistics company acquisition

CEVA Logistics, a subsidiary of the container giant CMA CGM Group, is buying the logistics solutions expert in Turkey, Borusan Tedarik Zinciri Çözümleri ve Teknoloji Anonim Şirketi for a total transfer price of $440m.

Privately held Borusan Holding has 69.47% of Borusan Tedarik’s shares, while the remaining 30.53% is held by publicly traded Borusan Yatırım.

The deal, which includes Borusan Tedarik subsidiaries in Germany, Bulgaria, Hong Kong and China, remains subject to customary closing conditions and regulatory approvals, CEVA Logistics said.

Borusan Tedarik is a 50+ years’ old company with 4,000 employees.

The company offers logistics solutions in Turkey, including contract logistics, finished vehicle logistics, full truckload and less than truckload ground transport, as well as air and ocean freight and customs.

According to the press release, the acquisition significantly strengthens CEVA’s current position in Turkey, by expanding the size of its domestic warehousing and distribution operations, adding approximately 570,000 square meters to its existing 620,000 square meters of warehouse space.

At the same time, the combined ground transport activities would execute nearly 1 million domestic transports per year, while Borusan Tedarik’s activities would also strengthen CEVA’s existing network connecting with Europe.

Meanwhile, CEVA’s ocean capacity would increase by 25%, while its air capabilities would rank among the top five in Turkey.

The acquisition follows previous integrations of Ingram Micro’s CLS division, GEFCO, and most recently, Bolloré Logistics.

Mathieu Friedberg, the CEO of CEVA Logistics, said: “As a top five global logistics player, we have identified Turkey as one of our strategic geographies where we expect to grow significantly.

“Complementing our existing presence in Turkey with the reputable experts and operations of Borusan Tedarik would put us in a position to offer even greater value to our combined customers and, as a result, grow faster than the market organically. CEVA is becoming bigger, stronger and smarter, so that we can then grow faster.”