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AP Moller Maersk to acquire Warehousing and Distribution Company Performance Team

Logistic News - Published on Mon, 24 Feb 2020

Image Source: AP Moller Maersk Performance Team
AP Moller Maersk announced that it has reached an agreement to acquire US-based warehousing and distribution company Performance Team to further strengthen its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers. As a leader in North America Warehousing & Distribution, Performance Team specializes in B2B and B2C distribution solutions within retail, wholesale and e-commerce with 24 warehousing sites. It has a track record of profitable growth of 17% per year for the last four years, and revenue for 2019 of USD 525m.

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. 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.
of Maersk in North America.

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 strategic supply chain locations.

In North America, Maersk Warehousing & Distribution is based in South Gate, California and has a regional network of 20+ facilities strategically located in the United States and Canada that offer warehouse and distribution solutions, including domestic consolidation, e-commerce fulfillment, inland drayage, facility and yard management and other value-added services.

The value of the transaction is 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. The acquisition is subject to regulatory approvals and the transaction is expected to close 1 April 2020. Until obtaining required regulatory approvals and closing of transaction, Maersk and Performance Team remain two separate companies and thus will do their business as usual.

Profile of the combined entity:
DetailsPerformance Team Maersk Warehousing & Distribution North AmericaCombined business
Sites242246
Area (Square meters)800,000563,0001,363,000
Turnover (USD milion)525m406m931m
 

[1] Transport Intelligence (2019), Global Contract Logistics
[2] Transport Intelligence (2019), Global e-commerce Logistics

Source :

Posted By : Yogender Pancholi on Mon, 24 Feb 2020
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