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The acquisition of Senator International allows Maersk to offer a wider product range and flexible and integrated logistics solutions
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Senator brings on board strong organization and a developed airfreight network with airline partners
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Maersk’s record free cash flow of US$6 billion in Q1 2022 leaves it awash with funds for further acquisitions
A.P. Moller-Maersk has completed its acquisition of global freight forwarder Senator International for around US$644 million, as it seeks to offer a wider array of products to customers needing an alternative mode of cargo transport.
Maersk said in a press release on June 2 that Senator brings with it a strong organization and a well-developed airfreight network with its own controlled flights and long-term partnerships with best-in-class airlines.
Senator also boasts a well-established full container load (FCL) and less than container load (LCL) network and specialized services such as packaging, warehousing and distribution across five continents, Maersk said.
“The acquisition will enable Maersk to offer an even wider range of products and the ability to provide flexible and integrated logistics solutions to our customers, allowing them to speed up or slow down cargo depending on their changing supply chain needs,” said Vincent Clerc, chief executive of Ocean & Logistics at Maersk.
“With Senator on board, we are ramping up our air freight capacity, network, and know-how significantly to cater even better for our customers,” Clerc added as he welcomed the new asset.
In the past two years, knock-on effects of COVID-19 have caused widespread congestions and production disruptions that have driven customers to seek alternative means of shipping their goods. Senator will add its broad industry expertise and product knowledge to Maersk’s network, Maersk said.
Maersk said the enterprise value of the deal, on a post-IFRS 16 basis, is around US$644 million, as announced last November. IFRS 16 is a valuation tool that captures the costs of leasing through increased net debt, as liability is recognized in the remaining lease term.
“By joining Maersk, our customers will have access to a broader portfolio of products for their business needs and provide them with a single point of contact. It’s a perfect match, and we are really excited about the next chapter in our united journey,” said Tim-Oliver Kirschbaum, CEO of Senator International.
“Senator’s deep experience and solid transport network will be key to the continued joint success, and we will bring new opportunities to our customers under the Maersk brand.”
The Senator International acquisition follows a bumper year for Maersk, which closed 2021 with revenue of US$61.79 billion that produced a record net profit of US$18.33 billion.
Copenhagen-based Maersk boosted its financial position further in the first quarter this year with record revenue of US$19.29 billion and net income of US$6.78 billion mostly due to sustained historically high freight rates.
As a result, the company had free cashflow of US$6 billion at the end of the first quarter that it could use for further mergers and acquisitions.
READ: Maersk sees 55% jump in Q1 revenue
On June 1, Maersk announced the further integration of B2C Europe’s logistics products and services into its own e-commerce portfolio in Europe, rebranded as Maersk and operating under the E-Delivery product. This marks the final step of the B2C Europe acquisition.
By teaming up with B2C Europe, Maersk is upscaling its e-commerce efforts in Europe by providing customers access to over 100 last-mile carriers through one interface, according to Karsten Kildahl, managing director of Maersk Europe.
Back in February, Maersk acquired Pilot Freight Service, further extending its global integrated logistics offering. The move aimed to complement the previous takeovers of Performance Team and Visible SCM in the US, LF Logistics in China and the Portuguese cloud-based logistics start-up, HUUB.
