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Pilot Freight Services, a US-based first-, middle- and last-mile as well as border-crossing solutions provider, will be bought by Maersk for US$1.68 billion
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The acquisition is subject to regulatory review and approval, which is expected to be obtained by the second quarter of 2022
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Pilot Freight will be adding specific new services within the fast-growing big and bulky e-commerce segment, thus increasing cross-selling opportunities for Maersk
Container carrier Maersk said it intends to acquire Pilot Freight Services, a US-based first-, middle- and last-mile as well as border-crossing solutions provider, for US$1.68 billion, as the shipping line continues to expand its landside transportation services.
Maersk said it will buy Pilot Freight, a specialist in the big and bulky freight segment in North America for B2C and B2B distribution models, from private equity firm ATL Partners in New York and British Columbia Investment Management Corporation, one of the largest institutional investors in Canada.
The acquisition is subject to regulatory review and approval, which is expected to be obtained by the second quarter of 2022, Maersk said in a February 9 release.
The buyout will extend Maersk’s integrated logistics offering deeper into the supply chain of its customers and complement the earlier acquisitions already made to provide integrated logistics solutions in North America.
Pilot Freight will be adding specific new services within the fast-growing big and bulky e-commerce segment, thus increasing cross-selling opportunities. It will also create significant cost synergies by leveraging capabilities across the different parts of service solutions, said the statement.
“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,” he added.
Maersk said the pandemic has accelerated the shift towards e-commerce, especially for big and bulky items, necessitating the creation of new distribution networks and solutions to support new consumer demands. The transition goes for numerous B2C vertical segments such as retail, home furnishings and consumer electronics as well as B2B segments such as aerospace, automotive and healthcare.
“By investing in first mile, middle mile and last middle and integrating them, we meet a clear customer demand. This acquisition will add even more expertise and supply chain capacity to customers facing capacity constraints and multiple handoffs with providers in the B2C and B2B space. After completion of this transaction, we will be able to help them install stronger, more integrated supply chains with better visibility and better outcomes for consumers,” said Narin Phol, regional managing director at Maersk North America.
Pilot operates a North American facilities-based transportation network of 87 stations and hubs through which freight is transported and distributed to end customers. The company uses mainly third-party providers of trucking and has access to controlled capacity to facilitate first-, middle- and last-mile service offering. The scope encompasses full truckload and less-than-truckload for both B2C and B2B distribution, including heavy and bulky shipments.
The combined Pilot and Maersk scale involves about 150 facilities in the US, including distribution centers, hubs and stations. This landside logistics network combined with Maersk’s international presence will create new end-to-end supply chain performance capabilities, the carrier said.
Photo by Lex Valishvili on Unsplash
