News / M&A speculation swirls as EV Cargo unveils 'robust financial position'

ev cargo

EV Cargo has published improved financial results – but has remained tight-lipped about increasingly loud market noise about a potential M&A deal. 

Last year saw the forwarding company see ebitda growth of 84%, with revenue up 8%, to £848.7m ($1.1bn) and gross profit up 11%, to £168.2m. 

EV Cargo is the platform company of private equity owner EmergeVest, and was formed in 2018 by bringing together a group of UK companies including Allport, Palletforce, Adjuno, and CM Downton. 

A sale of EV has been mooted for some time, including via an IPO, but market rumours are getting louder. 

One forwarding source told Loadstar Premium: “I think EmergeVest’s investors are getting bored of little or no return. Apparently this is real, and happening.” 

A second source suggested a deal had been done with DP World, but neither company has confirmed or denied this. 

EV Cargo has expanded significantly in recent years, adding Allport Netherlands, Fast Forward Freight, and Air Express Cargo. In 2021, a review of the business reportedly considered the potential for an IPO, which would have valued the business at $1.1bn, according to one estimate.

However, this value seems to have declined, with one forwarder indicating the current valuation is thought to be some $600m.  

EmergeVest founder Heath Zarin was, until last month, also chairman and CEO of EV Cargo. Adding more fuel to speculation on a sale, he has become executive chairman, while Simon Pearson, chief strategy officer, has become group CEO. Mr Pearson, also MD of EmergeVest, ran his own consultancy, specialising in “maximising shareholder value for owners and investors in the global logistics industry”.  

EV Cargo said at the time that the changes at the top tier of management would position the company “for future growth”. 

In its results announcement today, it said: “2024 has been a transformative year for EV Cargo, with many of the significant investments and strategic initiatives undertaken in recent years generating compelling value and results. We implemented key strategies aimed at expanding our service offerings, enhancing efficiency, and improving customer satisfaction.” 

EV Cargo today attempted to quell any financial concerns over the company, noting: “Net interest-bearing debt stood at £95.3m, as of 31 December 2024, representing 1.8x ebitda. EV Cargo remains a financially strong organisation with a solid balance sheet. Our prudent financial management has allowed us to finance significant acquisitions, geographic expansion, and strategic transformation, within conservative debt levels. This robust financial position not only enhances our resilience in a competitive market, but also positions us well for future expansion and innovation.” 

The forwarder faced a series of court cases when it fell out with one its backers after moving into the Hong Kong market. Cargo Services Group (CSG) founder John Lau Shek Yau, who was a director of EV Cargo, demanded the return of a 2023 $45m investment over EV’s purported strategy to compete with CSG in China. A couple of months later, he sued EV Cargo and EmergeVest for $1.7m for unpaid invoices. 

Mr Zarin, said today: “EV Cargo has delivered strong customer service and impressive financial results, even amidst a volatile global supply chain landscape.  

Source: EV Cargo

“As we look to the future, we are excited about the opportunities that lie ahead. The strategic initiatives implemented in recent years have laid a strong foundation for growth and innovation. We remain committed to delivering exceptional value to our customers and stakeholders.”  

Meanwhile, German digital forwarder Forto is also thought to be up for sale – but it declined to comment on speculation. 

Backed by investors including SoftBank and Northzone, it has raised some $600m since it founded in 2016. Its latest cash injection was in March 2022, when it received $250m, giving it a $2.1bn valuation – although it has yet to turn a profit, in line with its US equivalent, Flexport. 

Like EV Cargo, it has also announced recent management changes. Co-founder and CEO Miachael Wax became chairman two weeks ago, while CFO Guillaume Petit-Perrin succeeds him as CEO. 

Prior to joing Forto, Mr Petit-Perrin was an MD in investment banking at JP Morgan, advising clients on M&A transactions, corporate defence, and debt and equity raises across both private and public markets.