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Danish shipping group A.P. Moller-Maersk has closed the acquisition of Performance Team, a US-based warehousing and distribution company, in an effort to further strengthen its capabilities as an integrated container logistics company.
The closing comes after the duo received relevant regulatory approvals for the deal.
The transaction, announced in February 2020, has been valued at USD 545 million including lease liabilities of around USD 225 million.
Craig Kaplan, CEO of Performance Team, remains CEO of the company after the transaction closed.
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 more than 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.
“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,” Narin Phol, Regional Managing Director of Maersk in North America, commented.
“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.”
As explained, Maersk is targeting the warehousing & distribution component to offer more supply chain options and flexibility to its ocean clients. The global size of the sector is estimated at more than USD 200 billion and for North America it is USD 50 billion.
According to Maersk, there is a significant growth opportunity for 3rd party warehousing & distribution players as only a small part of the sector in North America is currently outsourced and e-commerce is growing 12% annually. Increasingly, retail brands are looking to continue to expand e-commerce sales to reach new customers to complement their store sales.