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Maersk Completes $545 Million Performance Team Acquisition

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Maersk Completes $545 Million Performance Team Acquisition

Global container shipping giant A.P. Moller-Maersk (OTCMKTS: AMKBY) said April 1 that it has completed its $545 million acquisition of U.S. warehouse and distribution firm Performance Team.

With the acquisition, Maersk's number of North American warehouses increases to 46 and will allow the company to expand its regional logistics services for ocean container shippers. Prior to purchasing California-based Performance Team, Maersk Warehousing and Distribution operated 22 warehouses in the U.S. and Canada.

American Shipper first reported the news of the acquisition on February 19.

Maersk's warehouse facilities provide logistics services, transload, consolidation, e-commerce fulfillment, inland drayage, facility management, yard management and value-added services.

In recent years, Performance Team has established itself as a leading provider of e-commerce, retail, wholesale, omnichannel distribution and transportation services. It has 24 distribution centers in the Los Angeles area, New York and Miami, as well as in Dallas/Fort Worth; Louisville, Kentucky; Shreveport, Louisiana; and Edgerton, Kansas.


[Source: A.P. Moller-Maersk]

"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," said Narin Phol, Maersk's regional managing director for North America, in a statement. "We believe our logistics strategy is well-positioned to support their end-to-end supply chain solution needs."

Maersk estimates the warehousing and distribution sector to be valued at $200 billion globally and $50 billion in North America.

"There is a significant growth opportunity for third-party warehousing and distribution players as only a small part of the warehousing and distribution sector in North America is currently outsourced and e-commerce is growing 12% annually," Maersk said. "Increasingly, retail brands are looking to continue to expand ecommerce sales to reach new customers to complement their store sales."

"We're excited to win more customers together and offer products based on our combined strengths," said Craig Kaplan, who will remain CEO of Performance Team post-acquisition.

El Segundo, California-based Performance Team, a 33-year old company, has more than 5,000 customers and operates in 8.6 million square feet of warehouse and distribution space throughout the U.S.

 

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Posted-In: A.P. Moller-Maersk Freightwaves LogisticsM&A News

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