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A.P. Moller – Maersk to acquire Pilot Freight Services

[ February 25, 2022   //   ]

A.P. Moller – Maersk announced in February its intention to acquire Glen Mills, PA-based Pilot Freight Services (Pilot), a first, middle and last mile as well as border crossing solutions provider that specializes in the big and bulky freight segment in North America for B2C and B2B distribution models. The Wall Street Journal revealed that the cost of the acquisition is $1.68 billion.
With acquisition will make it possible for Maersk to extend its integrated logistics offering deeper into the supply chain of its customers. It will complement the earlier acquisitions already made to provide integrated logistics solutions in North America, especially with Performance Team (PT) (B2B warehousing and distribution) and Visible SCM (e-commerce warehousing and parcel distribution).
“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,” Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller – Maersk, commented. “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.”
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.
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 3rd party providers of trucking and has access to controlled capacity which facilitates a first, middle and last mile service offering. The combined Pilot and Maersk scale will offer customers approximately 150 facilities in the U.S., including distribution centers, hubs and stations.
Throughout the unfolding of the pandemic, macro trends in the supply chain have accelerated, such as the increased shift towards e-commerce, especially for big and bulky items. Those in the industry expect this important shift will continue and necessitate the creation of new distribution networks and solutions to support companies adapting their supply chains to these new consumer demands. The transition goes for numerous B2C vertical segments such as retail, home furnishings and consumer electronics as well as B2B segments such as aerospace, automotive and healthcare.

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