Denmark's Maersk to acquire Pilot Freight Services for $1.68 bn

14 Feb '22

2 min read

Pic: A.P. Moller - Maersk

Denmark’s A.P. Moller - Maersk, an integrated logistics company has announced acquisition of Pilot Freight Services, a leading US-based first, middle and last mile, as well as border crossing solutions provider, for $1.68 billion to extend its support to customers with approximately 150 locations in the US, including distribution centres, hubs, and stations.

Pilot Freight Services, specialising in the big and bulky freight segment in North America for business to customers (B2C) and business to business (B2B) distribution models will add new services within the fast-pace big and bulky e-commerce segment to improving cross-selling opportunities.

With the acquisition of Pilot Freight Services, Maersk will also complement the earlier acquisitions that was implemented to offer integrated logistics solutions in North America, especially with Performance Team (PT) (B2B warehousing and distribution) and Visible SCM (e-commerce warehousing and parcel distribution). It will also create significant cost synergies by leveraging capabilities across the different parts of service solutions, as stated in the company press release.

“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. We look forward to welcoming the Pilot team aboard the A. P. Moller - Maersk family,” said Narin Phol, the regional managing director at Maersk North America.

“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,” said Zach Pollock, Pilot Freight Services CEO.

The acquisition is under a regulatory review and approval which is expected to be obtained by the second quarter (Q2) of the fiscal 2022.

Both the companies will operate independently until then.

Fibre2Fashion News Desk (SF)

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