A.P. Moller – Maersk (Maersk) has announced its intention to acquire Pilot Freight Services (Pilot), further extending its integrated logistics offering.
Pilot is a US-based first, middle, and last mile, as well as border crossing, solutions provider that specialises in the big and bulky freight segment in North America for business to customer (B2C) and business to business (B2B) distribution models.
With this move, Maersk will complement its earlier acquisitions that were made to provide integrated logistics solutions in the US. This includes its takeover of Performance Team (PT) and Visible SCM.
Pilot will be adding specific new services within the growing big and bulky e-commerce segment, thus increasing selling opportunities. This also aims to create significant cost synergies by leveraging capabilities across the different parts of service solutions.
“In Maersk we continue our path to develop a 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 for 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.”
The COVID-19 pandemic has led to the acceleration of macro trends in the supply chain, such as an increased shift towards e-commerce. This shift will continue and necessitate the creation of new distribution networks and solutions to support companies adapting their supply chains to these new customer demands.
The combined scale of both companies will offer customers 150 facilities in the US, including distribution centres, hubs, and stations. Pilot alone operates a transportation network of 87 these facilities.
“By investing in first mile, middle mile, and last mile and integrating them we meet a clear customer demand,” said Narin Phol, Regional Managing Director for Maersk North America.
“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 customers. We look forward to welcoming the Pilot team aboard the Maersk family.”
Zach Pollock, CEO of Pilot Freight Services, added: “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.”
Maersk has also published its operational results for 2021, reporting revenues reaching $61.8 billion.
Additionally, EBITDA tripled to $24 billion and free cash flow was $16.5 billion. This allowed Maersk to make strategic investments into decarbonisation and logistics growth, combined with strong cash distribution to shareholders.