The Business Times: A.P. Moller - Maersk Purchases Martin Bencher Group for US$61M
Last week, A.P. Moller – Maersk agreed to purchase Martin Bencher Group, a Danish project logistics company, in an acquisition-deal worth around US$61 million. With this deal, Maersk is now able to expand its land-based logistics operations and extend its reach across the world.
In a statement released on Friday, Aug 5, Martin Bencher Group, the Denmark-based project logistics company, will cost Maersk about US$61 million in enterprise value. Maersk intends to pay over 7 times the estimated earnings for 2021 before interest, tax, amortization, and depreciation.
Maersk currently controls about one-sixth (16.6%) of the world’s container trade. Earlier in the week, the company increased its profit forecast for 2022 to US$31 billion after beating its quarterly revenue expectations. Through organic growth and takeovers, Maersk aims to leverage the high-profit margins of land-based logistics, which is considerably more than at sea.
Martin Bencher, the Copenhagen-based logistics company, specializes in project logistics. This is a product that Maersk intends to offer its clients on a larger scale once the acquisition is complete. Martin Bencher presently has 29 offices across 22 countries with a workforce of about 170 employees.
Over the past couple of years, A.P. Moller – Maersk has completed a number of acquisitions and takeovers. In December 2021, Maersk purchased LF Logistics, an Asian warehouse specialist, in a deal worth US$3.6 billion. Earlier this year, Maersk acquired Pilot Freight Services, a US-based transportation and logistics company, for US$1.68 billion. With these acquisitions, Maersk continues to double its effort in targeting more profitable land-based logistics.
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