Big Wins in the U.S.A.

Maersk (Copenhagen, Denmark) buying warehousing and distribution company Performance Team (El Segundo, California)

Maersk buying company

A.P. Møller – Maersk said Wednesday it had agreed to buy U.S. warehousing and distribution firm Performance Team in a $545 million deal.

The Danish shipping giant said the total includes about $225 million in lease liabilities. The acquisition is subject to regulatory approval and the transaction is expected to close April 1.

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With this acquisition we invest in premium operational capabilities to significantly boost our existing Warehousing and Distribution offering. This will strengthen our ability to deliver products and solutions that meet our customers’ end-to-end supply chain needs, Maersk Ocean and Logistics CEO Vincent Clerc said in a statement.

“With its strong platform, Performance Team is a good match for A.P. Møller – Maersk as they complement our current Warehousing and Distribution proposition to customers in North America and will enable future growth.”

Maersk said it is targeting the Warehousing and Distribution component to offer more supply chain options and flexibility to its Ocean customers and noted that e-commerce in North America is growing at a rate of 12% annually.

The company said in November that its Logistics and Services division recorded third-quarter 2019 earnings before interest, taxes, depreciation and amortization (EBITDA) of $94 million, up 34% compared to the third quarter of 2018. Revenues were “positively impacted by increasing revenue in intermodal and warehousing and distribution, offset by declining revenue in sea and air freight forwarding and supply change management,” Maersk said.

Clerc was named CEO of Ocean and Logistics in December, after the departure of former Chief Operating Officer Søren Toft for MSC. Clerc, who joined Maersk in 1997, formerly served as chief commercial officer.

Earlier this month, Maersk announced that it had hired Patrick Jany, who, as chief financial officer, will be tasked in part with generating more revenue from inland logistics operations. He is slated to begin work May 1.

Narin Phol, regional managing director of Maersk in North America, said Wednesday, “We are going all the way for our customers, offering new ways to optimize their supply chains, grow their e-commerce business and find warehouses and distribution options.

“Performance Team’s expertise, market reputation and scalability will create significant performance gains for our customers that grow and complement our existing Maersk Warehousing and Distribution product in North America. We are especially excited to strengthen our e-commerce fulfillment capabilities since many of our retailers are looking to grow online retail sales in 2020 and beyond,” Phol said.

On its website, Performance Team said it handles third-party distribution and logistics out of its hubs in Los Angeles/Long Beach, Hayward and Inland Empire, California; Miami; Louisville, Kentucky; Shreveport, Louisiana; New York/New Jersey; Charleston, South Carolina; and Dallas/Fort Worth.

Founded in 1987, Performance Team, headquartered in El Segundo, California, serves more than 5,000 customers and operates in 8.6 million square feet of warehouse and distribution space around the country, according to its website.

Performance Team’s services are listed as distribution, e-commerce fulfillment, deconsolidation and transload, transportation and supply chain management.

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