Signing of a MoU for the acquisition of 30% of Groupe DUBREUIL Aero by the CMA CGM Group

September 23, 2020

• Acquisition of 30% of Groupe DUBREUIL Aero by the CMA CGM Group

• Creation of a center of expertise in transport and logistics to develop air freight

• New step forward in the development of two French family Groups with recognized entrepreneurial experience

Jean-Paul Dubreuil, Chairman of Groupe DUBREUIL Aero, and Rodolphe Saade, Chairman and Chief Executive Officer of the CMA CGM Group, announced today the signature of a Memorandum of Understanding for the acquisition of 30% of Groupe DUBREUIL Aero by the CMA CGM Group.

France's leading private airline group, shareholder of the Air Caraïbes and French Bee companies, is thereby welcoming into its capital a renowned shareholder, and a world leader in shipping and logistics. This trust-based partnership established between the two-family groups enables the combining of their respective entrepreneurial experience and the consolidating of their key positions in high-potential products and services, and is based on a common ambition to continue to develop their market.

Entry of the CMA CGM Group into shareholder base of Groupe DUBREUIL Aero
The CMA CGM Group investment will result from the combination of a subscription to a capital increase for an amount of 50 million euros and the acquisition of shares. This operation was approved by Groupe DUBREUIL Aero employee representative bodies and is still subject to the approval of the competition authorities in France, French Polynesia and Austria as well as authorization from the French Ministry of Economy and Finances.

At the end of this procedure, CMA CGM will own 30% of Groupe DUBREUIL Aero and will designate two representatives at Groupe DUBREUIL Aero Board of Directors.

Strategic cooperation aiming at developing and strengthening airfreight expertise
The CMA CGM Group provides its recognized logistics expertise to contribute to the development of Groupe DUBREUIL Aero cargo activity, notably through Hi Line Cargo, a subsidiary tasked with commercial distribution of freight on Air Caraïbes and French Bee’s aircrafts. The two companies boast modern fleets totaling 14 long-haul aircrafts including 8 Airbus A350s, a modern and particularly efficient asset capable of transporting, in addition to its passengers and their luggage, between 15 and 25 tonnes of freight.

Building a strong partnership leveraging routes footprint in resilient markets
The partnership initiated between the two groups occurs in the context of Covid-19 pandemic. It demonstrates the strength of the two groups and shows a shared trust in the potential of both Groupe DUBREUIL Aero airlines. Since the reopening of Orly on June 26, Air Caraïbes and French Bee have refocused their routes on overseas territories. These major routes for both airlines benefit from important affinity traffic (VFR traffic*) with French overseas markets, cushioned from geopolitical or health constraints. The months of July and August also allowed both airlines to consolidate their respective market shares in the French overseas territories.

A geography where both groups enjoy strong presence
Groupe DUBREUIL Aero and the CMA CGM Group are both already present throughout the overseas territories. Through their cooperation, they aim at supporting and enhancing economic development in Guadeloupe, Martinique, Guyana, Reunion and Polynesia. The synergy between the CMA CGM Group and Groupe DUBREUIL Aero will notably enable the CMA CGM Group to offer its clients services that are complementary to ocean freight, while keeping a hold on the transport chain in markets served by both groups.

Jean-Paul Dubreuil, Chairman of Groupe Dubreuil Aero, expressed his satisfaction at the conclusion of this partnership: "I am delighted that the CMA CGM Group has acquired a stake in our capital, which gives us the opportunity not only to strengthen the Group's equity capital with the support of a very fine French family company, but also to look forward more confidently to the turbulent period that the air transport sector is going through, by preparing for the rebound and future growth of the division."

Rodolphe Saade, Chairman and Chief Executive Officer of the CMA CGM Group said: "I am very pleased with this agreement. Our two-family groups share the same values and entrepreneurial spirit. The acquisition of this stake will enable the CMA CGM Group to strengthen its position in airfreight. We will bring to Groupe DUBREUIL Aero all our expertise in the transport of goods in ultra-marine territories."

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CMA CGM press release