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AP Moeller – Maersk announces the intended acquisition of Pilot Freight Services (Pilot). With the acquisition of Pilot, Maersk expands its integrated logistics offering deeper into its customers’ supply chains. It will complement previous acquisitions to provide integrated logistics solutions in North America.
(Kopenhagen) Pilot will add specific new services within the rapidly growing large and bulky e-commerce segment, thereby increasing cross-selling opportunities. It will also create significant cost synergies by leveraging capabilities across various parts of service solutions.
“At Maersk, we continue on our path to develop a truly integrated logistics offering for our customers that provides them with better transparency, more control, and resilience in their supply chains. Adding Pilot’s capabilities is particularly important as it allows us to develop more exciting solutions for our customers and support them in accelerating their migration to e-commerce. Furthermore, it will open up significant opportunities for cost synergies by leveraging the capabilities we have already developed in the network,” Vinzenz Clerc, CEO of Ocean & Logistics, A.P. Moller – Maersk.
During the spread of the pandemic, macro trends in the supply chain have accelerated, such as the increasing shift to e-commerce, particularly for large and bulky items. This significant shift will continue and require the creation of new distribution networks and solutions to help businesses adapt their supply chains to these new consumer demands. The transition applies to numerous vertical B2C segments such as retail, home textiles, and consumer electronics, as well as B2B segments like aerospace, automotive, and healthcare.
New over 150 Locations in the USA
Pilot operates a North American facility-based transportation network with 87 stations and hubs through which freight is transported and distributed to end customers. The company primarily uses third-party providers for truck transportation and has access to controlled capacities that enable a high-quality service offering for the first, middle, and last mile. The scope includes full truckloads (FTL) and less-than-truckloads (LTL) for both B2C and B2B distribution, including heavy and bulky shipments with white-glove service focused on expedited and time-sensitive services.
The combined Pilot and Maersk scale offers customers 150 facilities in the USA, including distribution centers, hubs, and stations. This depth of the land-based logistics network, combined with Maersk’s international presence, will create enormous new capabilities for the end-to-end supply chain.
More Expertise and Capacity
“By investing in and integrating First Mile, Middle Mile, and Last Mile, we are meeting a clear customer demand. This acquisition will add even more expertise and supply chain capacity for customers facing capacity constraints and multiple handoffs to providers in the B2C and B2B space. Upon completion of this transaction, we will be able to support them in building stronger, more integrated supply chains with better transparency and improved outcomes for consumers. We look forward to welcoming the Pilot team to the A.P. Moller-Maersk family,” Narin Phol, Regional Managing Director at Maersk North America.
“We are excited to join Maersk. This is the ideal outcome for our customers, our company, and our employees, who will be able to leverage the ambitious transformation of simplifying and integrating global supply chains that allows us to operate on a larger stage,” Zach Pollock, CEO of Pilot Freight Services.
About the Transaction
The transaction price is $1.68 billion, representing an enterprise value of $1.8 billion after IFRS 16 lease liabilities, which corresponds to an EV/EBITDA multiple before synergies of 13.8x, based on an estimated post-IFRS 16 EBITDA of approximately $130 million for the year 2021. The acquisition is subject to regulatory review and approval, which is expected to be obtained by the second quarter of 2022. Both companies will operate as independent entities and continue their businesses as usual until that time.
Photo: © Pilot Freight
