SHIPPING line Maersk has acquired US-based first, middle and last-mile freight logistics provider Pilot Freight Services, adding to its growing landside transportation offerings.
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. The scope encompasses full truckload (FTL) and less-than-truckload (LTL) for both B2C and B2B distribution including heavy and bulky shipments.
The combined Pilot and Maersk scale will offer customers around 150 facilities in the US, including distribution centres, hubs and stations.
This move will complement Maersk’s earlier acquisitions to provide integrated logistics solutions in North America, especially with Performance Team (B2B warehousing and distribution) and Visible SCM (e-commerce warehousing and parcel distribution).
Pilot 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.
Vincent Clerc, CEO of ocean and logistics at Maersk said, “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.
“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 said.
Pilot Freight Services CEO, Zach Pollock, said, “We are looking forward to joining Maersk. This is the ideal outcome for our customers, company and employees who will be able to tap into the ambitious transformation of simplifying and integrating global supply chains which will enable us to perform on a larger stage”.
The transaction price is US$1.68 billion equivalent to an enterprise value of US$1.8 billion.
The acquisition is subject to regulatory review and approval which is expected to be obtained by Q2 2022. Both companies will operate as independent businesses and run their operations as usual until that time.
