EmergeVest eyes acquisitions for EV Cargo to bolster sales

HONG KONG, July 6 (Reuters) – Hong Kong-based investment firm EmergeVest is considering global takeover targets for its holding company EV Cargo, as part of efforts to bolster the logistics services provider’s earnings, said the managing director of the investment company.

EV Cargo had several merger and acquisition opportunities, but other options were also being considered, Heath Zarin, founder and CEO of EmergeVest, told Reuters.

EmergeVest late last year tapped investment banks to explore strategic options for EV Cargo, according to people familiar with the situation and the media at the time. Possibilities included a sale or an initial public offering of shares, either of which was expected to value her between $1.5 billion and $2 billion, they said.

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“We continue to evaluate and review all strategic options to ensure the continued implementation of EV Cargo’s business growth strategy,” Zarin said in an emailed note.

While declining to comment on EV Cargo’s valuation, he said the company generated more than $1.5 billion in revenue in 2021, generating more than $100 million in revenue. That year, it had transported $32 billion worth of goods between 700 country pairs.

EmergeVest created EV Cargo in 2018 after consolidating ownership of six of the UK’s leading logistics companies.

In March, EV Cargo acquired Fast Forward Freight, headquartered in the Netherlands. This major expansion in Europe generated more than $170 million in revenue.

EV Cargo is targeting one or two more acquisitions this year and expects to enter the U.S. market via merger or acquisition within the next 12 months, with the goal of exceeding $3 billion in revenue, a spokesperson said separately. from EmergeVest.

EV Cargo’s expansion plans come as the global supply chain tries to recover from pandemic-related disruptions, including measures still in place in China, while dealing with high fuel costs and the ‘inflation.

Since its inception in 2013, EmergeVest, which specializes in the logistics and supply chain industry, has raised over $500 million and made 26 investments.

At the end of 2021, it had $860 million in assets under management.

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Reporting by Kane Wu; Editing by Sumeet Chatterjee and Bradley Perrett

Our standards: The Thomson Reuters Trust Principles.

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