CEVA Logistics continues to grow “bigger, stronger and smarter”, as the company announces it acquires Borusan Tedarik, a leading logistics company in Turkey. The move almost doubles CEVA’s operations in the country.
The two companies announced the signing of a binding agreement that would see CEVA Logistics fully acquire of Borusan Tedarik Zinciri Çözümleri ve Teknoloji Anonim Şirketi (Borusan Tedarik).
The French logistics firm – which itself was bought out by the CMA CGM Group in 2019 – will purchase 100% of Borusan Tedarik shares, totalling a value of $440m USD. The acquisition is still awaiting customary closing conditions and regulatory approval, but CEVA also stands to gain Borusan Tedarik’s subsidiaries in Bulgaria, China, Germany and Hong Kong as part of the purchase.
Borusan Tedarik offers a wide variety of logistics packages to its customers, who range from leading domestic firms to multinational corporations. In addition to air and ocean freight, the Istanbul-based logistics company specialises in contract logistics and ground transport, specifically finished vehicle logistics (FVL) and both full truckload (FTL) and less than truckload (LTL) options. According to CEVA’s statement, the company expects to leverage these offerings Borusan Tedarik’s involvement in the automotive industry to become a top three player in the domestic FVL space, while also strengthening its supply chains arounds the European continent.
Speaking on the acquisition, Mathieu Friedberg, CEO, CEVA Logistics, commented: “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.”
The acquisition would see 4,000 new employees move over to CEVA from Borusan Tedarik and its subsidiaries. CEVA also reports that approximately 570,000sq.m of warehouse space will be added, effectively doubling its current footprint of 620,000sq.m, and for this increased network to carry out almost 1 million domestic transports per year.
Friedburg describes Turkey as “one of our strategic geographies where we expect to grow significantly.” This is a sentiment echoed by other players in the space – in just the last 12 months, DFDS purchased another major Turkish logistics company, BLG Group set up its own Turkish subsidiary, and DP World strengthened its presence at the Izmit port.
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