Maersk to Acquire U.S. Warehousing and Distribution Company
A.P. Moller - Maersk has reached an agreement to acquire Performance Team for $545 million.
Performance Team is a U.S.-based warehousing and distribution company, and Maersk says the acquisition will further strengthen its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions.
Performance Team has a track record of profitable growth of 17 percent per year for the last four years, and revenue for 2019 of $525 million. It is a family run business that began operations in 1987 in California. Today, the company operates 24 warehousing sites covering 800,000 square meters across strategic supply chain locations.
In North America, Maersk Warehousing & Distribution is based in South Gate, California, and has a regional network of 20+ facilities located in the U.S. and Canada that offer warehouse and distribution solutions, including domestic consolidation, e-commerce fulfillment, inland drayage, facility and yard management and other value-added services.
“With this acquisition we invest in premium operational capabilities to significantly boost our existing Warehousing & Distribution offering,” said Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller - Maersk. “This will strengthen our ability to deliver products and solutions that meet our customers’ end-to-end supply chain needs. With its strong platform, Performance Team is a good match for A.P. Moller - Maersk as they complement our current Warehousing & Distribution proposition to customers in North America and will enable future growth.”
Maersk says the global size of the Warehousing & Distribution sector is estimated at more than $200 billion and for North America it is $50 billion. There is a significant growth opportunity for third party Warehousing & Distribution players as only a small part of the Warehousing & Distribution sector in North America is currently outsourced and e-commerce is growing 12 percent annually.
The transaction is expected to close April 1, 2020.