Ceva is completing its recapitalisation which reduces its net debt by some €1.3 billion, cutting interest payments by over €130m and opening the way to €230m of investment cash.
“We are pleased to be successfully completing the recapitalisation and are appreciative of the support of our creditors in this effort,” said chief executive officer Marvin O Schlanger.
“Ceva is now a much stronger competitor in the supply chain industry and we look forward to growing with our customers around the world.
Marvin O Schlanger
“This is a transformational transaction that positions Ceva to better serve our customers and develop new supply chain solutions and services to meet their needs”.
Ceva recently reported EBITDA of €251m euros for 2012 but net financing costs amounted to €284m. The recapitalisation package will have a significant effect on the profitability of the business.
Revenue increased 4.8 per cent in the year to €7.2bn last year – a record for the Company.
Revenue in Freight Management increased 6 per cent as lower air freight volumes, particularly out of Asia, were offset by a solid performance in ocean freight across all regions.
Ceva said the increase in the company’s Contract Logistics revenues reflected soft conditions across various key markets, most evident in Southern Europe, compensated by a strong performance in Asia Pacific.