Maersk is expanding its US warehousing network with a $890 million acquisition.
The global logistics company has signed a $890 million deal (US$545 million) to acquire Performance Team, a U.S.-based warehousing and distribution company.
The deal will more than double Maersk’s warehousing and distribution footprint, increasing the number of Maersk warehouse locations in North America from 22 to 46.
Maersk merged with freight-forwarder Damco at the beginning of 2019, to increase its focus on end-to-end logistic solutions for cargo owners. The company is continuing to pursue acquisitions to build its end-to-end supply chain capabilities.
Narin Phol, Regional Managing Director of Maersk in North America said the company’s customers now have the opportunity to add Performance Team’s omnichannel fulfillment 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,” Narin said.
“We believe our logistics strategy is well-positioned to support their end-to-end supply chain solution needs.”
Vincent Clerc, Maersk Chief Commercial Officer said in a company update last week that global operations and business continues throughout the current global pandemic.
“I am very proud of the Maersk team who has been able to redraw our network in such short time to meet the challenges ahead without compromising our reach,” he said.
The company said it remains committed to its full-service supply chain model, banking on integrating land and sea operations to sustain growth.
Maersk has been operating with Oceania businesses for more than twenty years, exporting Australian prime beef to key markets around the world.