A.P. Moller – Maersk has announced a new $821 million agreement with US-based warehousing and distribution company to boost its logistics and services.
Performance Team is a US company that specialises in B2B and B2C distribution solutions within retail, wholesale and e-commerce with 24 warehousing sites.
A.P. Moller – Maersk has now acquired Performance Team, strengthening its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers.
The value of the transaction is USD 545m (approximately AU$821m) including IFRS 16 lease liabilities of around USD 225m.
Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller – Maersk said Performance Team will complement its current Warehousing & Distribution proposition to customers in North America and will enable future growth.
“With this acquisition we invest in premium operational capabilities to significantly boost our existing Warehousing & Distribution offering. This will strengthen our ability to deliver products and solutions that meet our customers’ end-to-end supply chain needs,” Vincent said.
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 in the US market.
The global size of the Warehousing & Distribution sector is estimated at more than USD 200bn (approximately AU$301bn).
Narin Phol, regional managing director of Maersk in North America said he is excited to strengthen the company’s e-commerce fulfillment capabilities since many of our retailers are looking to grow online retail sales in 2020 and beyond.
Performance Team is a family run business that began operations in 1987 in California, US. Today, the company operates 24 warehousing sites covering 800,000 square meters across multiple supply chain locations.
Craig Kaplan, CEO of Performance Team – who will remain CEO of Performance Team once the transaction closes said joining a global container logistics leader is the next step for the company’s growth.
“Maersk has a significant presence here in the US. They have a continuous improvement mindset like ours and together we can clearly deliver attractive logistics solutions that make our customers more competitive while ensuring our employees grow with the business,” he said.
The acquisition is subject to regulatory approvals and the transaction is expected to close 1 April 2020.