HONG KONG : Hong Kong investment firm EmergeVest is eyeing takeover targets globally for its portfolio company EV Cargo, as part of efforts to bolster revenue for the logistics services provider, the chief executive of the investment firm said.
EV Cargo had several merger and acquisition opportunities, but other options were also being explored, Heath Zarin, EmergeVest's founder and CEO, told Reuters.
EmergeVest late last year tapped investment banks to explore strategic options for EV Cargo, according to people familiar with the situation and media reports at the time. The possibilities included a sale or initial public offering of shares, either of which were expected to value it at $1.5 billion to $2 billion, they said.
"We continue to evaluate and consider all strategic options to drive ongoing delivery of EV Cargo's corporate growth strategy," Zarin said in an emailed note.
While declining to comment on EV Cargo's valuation, he said the company had generated more than $1.5 billion in revenue in 2021, yielding over $100 million in earnings. In that year it had transported $32 billion worth of merchandise between 700 country pairs.
EmergeVest created EV Cargo in 2018 after consolidating ownership of six of Britain's leading logistics companies.
In March, EV Cargo acquired Netherlands-headquartered Fast Forward Freight. This major expansion into Europe added more than $170 million of revenue.
EV Cargo is targeting one or two more acquisitions this year and planning to enter the U.S. market by merger or acquisition in the next 12 months, with an aim to surpass $3 billion of revenue, an EmergeVest spokesperson said separately.
EV Cargo's expansion plans come as the global supply chain tries to recover from pandemic disruption, including measures still applied in China, while also facing high fuel costs and inflation.
Since its formation in 2013, EmergeVest, which specialises in the logistics and supply chain sector, has raised more than $500 million and has made 26 investments.
At the end of 2021, it had $860 million of assets under management.