The CMA CGM Group is expanding its logistics footprint by investing in Wing, an urban e-commerce logistics operator.
The container shipping giant, which is headquartered in France, has “taken a position” in Wing for an undisclosed sum via its investment fund, CMA CGM Ventures.
“At the same time, CEVA Logistics, a subsidiary of CMA CGM that joined the Group this year, entered into an ambitious industrial and commercial partnership with Wing,” reported the liner and logistics major.
“The two companies will thus implement cross-selling initiatives and CEVA Logistics will make space available to Wing in its warehouses.”
CMA CGM refused to disclose the size of the investment or shareholding in Wing when approached by FreightWaves.
The French carrier claimed the deal was “a concrete illustration” of the synergies between CMA CGM and CEVA, the third-party logistics (3PL) services provider purchased in April that some analysts believe is putting pressure on CMA CGM’s liquidity and adding to its already high debt levels.
CEVA was ranked 13th among global 3PLs by revenue in 2018, according to Armstrong & Associates.
CMA CGM said it would support the development of Wing “by forging with it an ambitious financial, industrial and commercial partnership,” adding that the investment in Wing would benefit both Wing and CEVA customers.
“This merger will enable the two companies to offer their respective customers innovative new services with high added value in the field of urban logistics,” said the statement. “
Wing, founded in 2015, currently provides urban supply chain solutions to more than 300 e-retailers in leading cities in France by helping them optimize their e-commerce logistics.
“With just a few clicks from an online platform, Wing customers see a courier show up to pick up orders sold on the internet,” said a CMA CGM statement. “These are then deposited in a logistics warehouse where they are packaged and shipped. In less than 48 hours, orders are delivered to the end customer.”
Nicolas Sartini, CEO of CEVA Logistics, said the purchase would help realize the digital innovation strategy of Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group.
“The Group also confirms its willingness to offer its customers ever more innovative services throughout the logistics chain,” he added.
Jean-Baptiste Maillant, Founder and President of Wing, said CMA CGM’s involvement would help Wing develop its long-term vision. “Their very strong development in logistics provides us with important synergies to offer a complete and innovative service to our respective customers,” he added.
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