Logistics Management: Maersk Acquires Pilot Freight Services for $1.68 Billion
A.P. Moller-Maersk has completed its acquisition of Pilot Freight Services at the transaction price of $1.68 billion. Established in 1970, Pilot Freight Services (Pilot) is a leading international transportation and logistics provider with 87 stations and hubs located throughout North America. Maersk’s international network, coupled with Pilot’s logistics offerings will certainly “create significant new capabilities”, offering customers over 150 facilities in the US alone.
“Our customers are looking for us to accelerate their supply chain speed, remove handoffs and constantly improve their end-to-end, omni-channel business model to reach their financial growth goals. Pilot’s expertise and existing infrastructure enables us to achieve these goals by creating more agile, nimble supply chains to serve customers the way they want to be served,” said Narin Phol, Regional Managing Director of Maersk North America.
According to Ben Gordon, Managing Partner of Cambridge Capital, this deal indicates the continuation of an underlying trend. “Shipping giants like Maersk are converting their windfall 2021 profits in shipping into long-term sustainable growth in logistics,” Gordon mentioned. “They’ve acquired Visible SCM in parcel logistics, LF Logistics in global freight forwarding, and now Pilot in big/bulky last-mile logistics. I expect Maersk will continue to buy logistics services businesses. And I expect other shipping lines to follow suit.”
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