A.P. MOLLER – MAERSK COMPLETES ACQUISITION OF PERFORMANCE TEAM

On 1 April 2020 – Florham Park, New Jersey USA – A.P. Moller – Maersk announces that it has closed its acquisition of Performance Team, a US-based warehousing and distribution company, to further strengthen its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers.

About Maersk: A.P. Moller – Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As a global leader in shipping services, the company operates in 130 countries and employs 80,000 people.

About Performance Team: Performance Team offers a full suite of e-commerce, retail, wholesale, and omnichannel distribution and transportation services, including dedicated facility management, replenishment, pick and pack, put to store, garment on hanger (GOH), value-added services, retail compliance, and drayage.

Profile of the combined entity

Result of the Acquisition

• Acquisition positions A.P. Moller – Maersk among North America’s leading Warehouse and Distribution providers with 46 warehouses for customers and accelerates the company’s regional logistics and services model.
• Performance Team’s premium omnichannel fulfillment expertise, e-commerce and inland transportation will be extended to a broader range of customers to enhance the Maersk Warehouse & Distribution network and better address customer’s needs.

The Warehousing and Distribution Opportunity

The Warehousing & Distribution component of landside supply chains is increasingly the best control valve for the flow of goods to regional distribution centers, stores and consumers as businesses seek to improve their competitiveness, control inventory management and improve the consumer experience.

The global size of the Warehousing & Distribution sector is estimated at more than USD 200bn and for North America it is USD 50bn.1 There is a significant growth opportunity for 3rd 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% annually. Increasingly, retail brands are looking to continue to expand e-commerce sales to reach new customers to complement their store sales.

Why Performance Team?

• Strategic fit to our existing Maersk Warehousing & Distribution product by strengthening our capabilities – enabling us to offer customers more services, more warehouse space, more trucking capabilities and an improved, modern information system to manage supply chains.
• Performance Team is known for its warehousing fulfillment services, e-commerce, inland transportation and distribution services.
• Their key strengths are their fulfillment services and distribution capabilities to customer warehouses and stores.
• Well-managed, profitable, family-owned, US-based and focused on import volumes – with locations in Los Angeles/Long Beach, New York/New Jersey, Miami and inland centers.
• Their warehouse business is asset-light (with leased facilities) and they operate both dedicated and multi-client facilities.
• Their transportation service fleet consists of owned, leased and rented units.
• Performance Team’s people are known in the market for their strong engineering and operating process focus.

The scope of operations and services provided after the acquisition

Omnichannel: Provide customers with Performance Team’s omnichannel fulfillment services to create a hold and flow model – or customize a solution for your specific distribution needs.

Trucking: Maersk’s combined inland transport capabilities total nearly 600 trucks. (Performance Team 340 trucks/HUDD Transportation 250 trucks) More tractor power and smoother deliveries with fewer handoffs mean better use of customers’ management time.

Scale and locations: 46 warehouses in North America with ideal locations – many are near ports – and warehouse capacities that fit the market needs.

Catalyst for customer’s growth: Performance Team was the clear winner based on customer feedback, leadership excellence and fit with Maersk Warehousing & Distribution’s scope of service and locations.

Business as usual approach: the business remains as usual for customers of Performance Team and Maersk. Customers still enjoy the same service, point of contact, and customer experience. In addition, all agreed to service levels, terms & conditions, and contracts will remain valid to ensure smooth operations for all customers.

Source: Maersk