Global Container Shipping Giant Completes $ 545m Acquisition

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  • Maersk closes the acquisition of Performance Team, in an effort to further strengthen its capabilities as an integrated container logistics company.
  • The transaction has been valued at USD 545 million including lease liabilities of around USD 225 million.

Maersk completes acquisition of Performance Team, a US-based warehousing and distribution company, says a press release published on their website.

About Maersk’s latest acquisition 

Maersk announces that it has completed the acquisition of Performance Team, a US-based warehousing and distribution company. According to Maersk, this addition is to further strengthen its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers. 

Logistics solutions offered 

The addition of Performance Team’s engineered solutions and distribution center capabilities to retail, wholesale and direct to consumer services will integrate ideally with Maersk Warehousing & Distribution’s regional network of 20+ facilities in the United States and Canada. The logistics solutions offered are : 

  • transload, 
  • consolidation, 
  • e-commerce fulfillment, 
  • inland drayage, 
  • facility management, 
  • yard management and 
  • value-added services. 

The Warehousing and Distribution Opportunity

The Warehousing & Distribution component of landside supply chains is increasingly the best control valve for the flow of goods to regional distribution centers, stores and consumers as businesses seek to improve their competitiveness, control inventory management and improve the consumer experience.  

Supply chain with storage

A premium Warehousing & Distribution network clearly creates multiple options in the supply chain with storage in the warehouse and in yards – as well as fulfillment to distribution centers, specific stores, and/or the end consumer. 

“Our customers now have the opportunity to add Performance Team’s omnichannel fulfillment services into their supply chain to create a hold and flow model customized to their specific needs. This approach to marketplace fluctuations combined with the scope of our Maersk Warehousing & Distribution services, creates added flexibility and winning choices for supply chain managers enabling them to better serve their customers in these challenging times.  We believe our logistics strategy is well-positioned to support their end-to-end supply chain solution needs,” said Narin Phol, Regional Managing Director of Maersk in North America.  

More supply chain options and flexibility

Maersk is targeting the Warehousing & Distribution component to offer more supply chain options and flexibility to its Ocean customers. 

  • The global size of the Warehousing & Distribution sector is estimated at more than USD 200bn and for North America it is USD 50bn.
  • There is a significant growth opportunity for 3rd party Warehousing & Distribution players as only a small part of the Warehousing & Distribution sector in North America is currently outsourced and e-commerce is growing 12% annually.
  •  Increasingly, retail brands are looking to continue to expand ecommerce sales to reach new customers to complement their store sales. 

Maersk’s commitment 

”A.P. Moller-Maersk’s commitment to maintaining what has made the Performance Team successful makes this a tremendous opportunity for our customers and our employees. We’re excited to win more customers together and offer products based on our combined strengths,” said Craig Kaplan, CEO of Performance Team – who remains CEO of Performance Team after the transaction closed. 

The transaction has been valued at USD 545m (EV) including IFRS 16 lease liabilities of around USD 225m. Performance Team 2019 EBITDA adjusted for IFRS 16 effects is estimated at USD 90m. 

Profile of the combined entity:  

Performance Team regional footprint in the US:

US West Coast

  • Los Angeles (Inland Empire) 
  • Los Angeles/Long Beach (Southern California) 

US East Coast

  • New York/New Jersey  
  •  Miami    

US Inland Centers

  • Dallas/Fort Worth  
  • Louisville, Kentucky   
  • Shreveport, Louisiana 
  • Edgerton, Kansas 

Maersk Warehousing & Distribution regional footprint in North America:

West Coast

  • Los Angeles/Long Beach (Southern California) 
  • Oakland, California (4PL)
  • Seattle, Washington
  • Vancouver, Canada 

US East Coast

  • Virginia
  • Georgia 
  • New York / New Jersey 

US Inland Centers

  • Elwood, Illinois
  • Bedford Park, Illinois 
  • Pasadena, Texas

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Source: Maersk

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