France-based third-party logistics company CEVA Logistics on Monday said it had signed an agreement to acquire a 96 per cent stake in Mumbai-based Stellar Value Chain Solutions from an affiliate of US-based private equity firm Warburg Pincus and other shareholders.

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CEVA said it would acquire approximately 7,700,000 square feet of space across more than 70 facilities in 21 cities across India, and would “inherit the stellar workforce of nearly 8,000 full-time and temporary employees, who have strong expertise and relationships in India”. 

The acquisition will help CEVA Logistics diversify its presence in India, boosting its local workforce, assets, customer roster and capabilities, the France-headquartered company said in a statement. 

CEVA Logistics is currently present in 75 locations across 35 cities in India with approximately 27,00,000 square feet of warehouse space. 

With the acquisition, CEVA Logistics would become a much stronger player in Indian contract logistics, offering its new customers global expertise and increased operational efficiency and innovation, it said.

"With the addition of Stellar VCS, we will continue our strategic growth with the goal of becoming a Top 5 global logistics player. 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,” said Mathieu Friedberg, Chief Executive Officer, CEVA Logistics. 

CEVA also said the deal strengthens its strategy to provide its customers with end-to-end supply chain solutions.

“We have built a strong network across India based on our commitment to serving our customers through long-term partnerships. Warburg Pincus has been an extremely valuable and supportive partner in building this company right from its inception and is now passing on the baton to another global giant, CEVA Logistics, to take this company ahead,” said Anshuman Singh, Founder of Stellar Value Chain Solutions. 

“I look forward excitedly to the future with CEVA, further supporting our commitment to our customers and allowing them to benefit from CEVA’s global capabilities with our knowledge of India. The shared values of our Stellar associates and those of the CEVA Logistics team will allow for a quick integration and new, global opportunities for our associates,” he added. 

Started in 2016 by Singh, Stellar Value Chain Solutions has grown into a key local player in contract logistics with omni-channel fulfillment services in the e-commerce, automotive, food products, consumer, fashion and retail, healthcare and pharmaceuticals market segments. Singh would continue driving this business following the acquisition, according to the statement. 

In addition to India, the acquisition complements recent growth in CEVA’s contract logistics business elsewhere in the Asia Pacific region. The deal is expected to benefit CEVA’s freight management and customs business in the region, it said.