A.P. Moller – Maersk has reached an agreement to acquire 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 deal is valued at US$545 million.
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 US$525 million.
Maersk is targeting the warehousing and distribution component to offer more supply chain options and flexibility to its ocean customers. The global size of the warehousing and distribution sector is estimated at US$200 billion and for North America it is US$ 50 billion. There is a significant growth opportunity for 3rd party warehousing and distribution players as only a small part of the sector in North America is currently outsourced and e-commerce is growing 12% annually.
The Business Times reported that Maersk, which operates a fifth of the world’s container fleet, has in recent years tried to reduce its reliance on sea-borne shipping. The decision to buy Performance Team is part of the strategy to expand land-based transport services.
