Maersk has announced that it has completed the acquisition of Performance Team, a US-based warehousing and distribution company. The acquisition aims to further strengthen Maersk’s capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers.
The addition of Performance Team’s engineered solutions and distribution centre capabilities to retail, wholesale and direct to consumer services will integrate with Maersk Warehousing & Distribution’s regional network. The acquisition will bring Maersk’s total number of warehouses in North America to 46. The warehouses will offer logistics solutions, transload, consolidation, e-commerce fulfilment, inland drayage, facility management, yard management and value-added services.
“Our customers now have the opportunity to add Performance Team’s omnichannel fulfilment services into their supply chain to create a hold and flow model customised 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,” said Narin Phol, Regional Managing Director of Maersk in North America.
Maersk is targeting the Warehousing & Distribution component to offer more supply chain options and flexibility to its Ocean customers.
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 $200bn and for North America it is $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 e-commerce sales to reach new customers to complement their store sales.
The transaction has been valued at $545m (EV) including IFRS 16 lease liabilities of around $225m. Performance Team 2019 EBITDA adjusted for IFRS 16 effects is estimated at $90m.