A.P. Moller – Maersk is continuing its integrated logistics transformation, announcing Wednesday its intention to acquire U.S.-based trucking company Pilot Freight Services (Pilot) for $1.8 billion.
Pilot specializes in first, middle, last mile solutions in the United States’ “big and bulky” freight segment, as well as North American border crossings. The company operates a facilities-based transportation network of 87 stations and hubs and uses mainly 3rd party trucking providers for full truckload (FTL) and less-than-truckload (LTL) shipments for both B2C and B2B freight distribution.
Maersk will acquire the company from ATL Partners, a sector-focused Private Equity firm in New York and British Columbia Investment Management Corporation (BCI), one of the largest institutional investors in Canada.
For Maersk, the acquisition would be the latest in its transformation from a container shipping powerhouse into an integrated logistics provider, having acquired six businesses in 2021 within air, e-commerce, warehousing and fulfillment.
“In Maersk we continue our path to develop truly integrated logistics offering for our customers, offering them better visibility, more control and resilience in their supply chains,” said Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller – Maersk. “Adding the capabilities of Pilot is especially important because it will allow us to create more exciting solutions for our customers and support them through the acceleration of the migration towards e-commerce. Furthermore, it will open significant cost synergy opportunities by leveraging the capabilities we have already developed in the network.”
Combined, Pilot and Maersk will offer approximately 150 facilities in the United States, including distribution centers, hubs and stations. “This landside logistics network depth combined with Maersk’s international presence will create tremendous new, end-to-end supply chain performance capabilities. Pilot’s acquisition of American Linehaul Corporation in July 2021 was instrumental in creating this leading market expertise in middle mile, LTL expedited capabilities,” Maersk said in a statement.
The transaction price was listed $1.68 billion, equivalent to an enterprise value of $1.8 billion. The acquisition is still subject to regulatory review and approval, which Maersk said is expected to be obtained by Q2 2022.
Source: gCaptain
