A.P. Moller - Maersk completes acquisition of Performance Team
A.P. Moller - Maersk announces that it has closed its acquisition of Performance Team, a US-based warehousing and distribution company, to further strengthen its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers, the company said in its release.
The addition of Performance Team’s engineered solutions and distribution center capabilities to retail, wholesale and direct to consumer services will integrate with Maersk Warehousing & Distribution’s regional network of 20+ facilities in the United States and Canada offering logistics solutions, transload, consolidation, e-commerce fulfillment, inland drayage, facility management, yard management and value-added services.
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. 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.
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.1 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.2 Increasingly, retail brands are looking to continue to expand ecommerce sales to reach new customers to complement their store sales.
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.
About A.P. Moller – Maersk:
A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As a global leader in shipping services, the company operates in 130 countries and employs 80,000 people.
About Performance Team:
Performance Team offers a full suite of e-commerce, retail, wholesale, and omnichannel distribution and transportation services, including dedicated facility management, replenishment, pick and pack, put to store, garment on hanger (GOH), value-added services, retail compliance and drayage.