Maersk to acquire Pilot Freight Services
It has been announced that the Danish company A.P. Moller – Maersk is set to acquire Pilot Freight Services Inc. The buying price was not disclosed but is estimated to be around 1.7 billion US dollars which will help Maersk increase its US presence in the industry.
Pilot Freight Services is a multinational transportation and logistics firm with a fleet of around 1,500 freight delivery vehicles and 75 locations in the United States and Europe. The land-based company was privately owned by ATL in 2016 and became one of the largest B2C providers in the U.S.
“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,” CEO of Pilot Freight on Maersk acquisition.
Pilot will enhance cross-selling opportunities in its large and bulky e-commerce sector by adding new services. Utilizing capabilities across the various elements of service solutions will also eliminate significant expenses and create substantial cost synergies.
With Maersk and Pilot combined, it will create a more prominent presence for an already strong company offering 150 terminals in North America. The purchase of Pilot Freight will help expand their reach into the US market and increase their global presence.
The pandemic has accelerated macro trends in the supply chain, such as a growth in the use of e-commerce. To support firms in adjusting their supply chains to these new client needs, this transition will continue, requiring the development of new distribution systems and solutions.
The company can now offer more diversification, which is expected to provide increased stability in production. The new partnership will give the Danish giant access to more vital capabilities for e-commerce businesses in North America.
“This acquisition will add even more expertise and supply chain capacity to customers facing capacity constraints and multiple handoffs with providers,” Regional Managing Director of Maersk, North America.
The purchase is expected to close in Q2 2022, subject to regulatory approval.