A.P. Moller-Maersk has announced that it has reached an agreement to acquire Performance Team, an 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. As a leader in North America warehousing and distribu-tion, Performance Team specialises 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 cent per year for the last four years, and revenue for 2019 of $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 more than $ 200 billion and for North America it is $ 50 billion. There is a significant growth opportunity for 3rd party warehousing and distribution play-ers as only a small part of the sector in North America is currently outsourced and e-commerce is growing 12 per cent annually.
“We are going all the way for our custom-ers, offering new ways to optimise 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,” said Mr Narin Phol, Regional Managing Director 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 cover-ing 800,000 sq. metres across strategic supply chain locations.
In North America, Maersk Warehousing & Distribution is based in South Gate, California and has a region-al network of 20+ facilities strategically located in the United States and Canada that offer warehouse and distribution so-lutions, including domestic consolidation, e-commerce fulfillment, inland drayage, facility and yard management, and other value-added services.
The acquisition is subject to regulatory approvals and the transaction is expected to close on April 1, 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.
