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HomeNewsMaersk Acquires E-commerce Logistics Companies in Europe and the US

Maersk Acquires E-commerce Logistics Companies in Europe and the US

  • In the second quarter of 2021, A.P. Moller – Maersk continued to deliver strong growth and profitability, with record-breaking performance marking the 12th quarter of successive year-on-year earnings progress.
  • Revenue grew 58 pct. to USD 14.2bn in Q2 and EBIT increased almost five times to USD 4.1bn. The net result came in at USD 3.7bn in the second quarter, bringing the net result for the first half of 2021 to USD 6.5bn. Return on invested capital (ROIC) is now at 23,7 pct. for the past 12 months.

 A.P. Moller – Maersk (Maersk) has announced the acquisition of Visible Supply Chain Management (Visible SCM), a business-to-consumer (B2C) logistics company focused on B2C parcel delivery and B2C fulfillment services in the US and headquartered in Salt Lake City, Utah, US. Furthermore, it announced the intention to acquire B2C Europe Holding B.V. (B2C Europe) a business-to-consumer logistics company focused on B2C parcel delivery services in Europe and based in The Netherlands. Both companies are well-established and recognized players in the E-commerce Logistics industry.

Tapping into the potential of E-commerce Logistics

Fast-changing consumer buying patterns and digital platforms are accelerating online consumption, redefining business models across the globe. Many Maersk customers are seeing strong E-commerce sales growth as they roll out digital first strategies and are looking for support of their business-to-consumer supply chain growth. The two acquisitions will address this customer trend and strengthen Maersk’s E-commerce Logistics products suite in line with its strategic business transformation.

“Maersk has set out to build strong E-commerce Logistics capabilities that will extend and reinforce our existing supply chain offering and create growth opportunities. Today, customers rely on the integrated logistics approach and services which Maersk offers. By combining that with the operating models and value proposition of Visible SCM and B2C Europe, we will enable our customers to continue to develop their E-commerce offering, thus extending the scope and potential of our strategic partnerships. The acquisitions will provide Maersk with a strong growth platform in the rapidly evolving field of E-commerce, where our investments in digitalization and integration will create significant synergies and make a big difference for customers’ ability to sell across multiple channels effectively. Furthermore, they will allow us to have a more comprehensive offering towards small and medium sized customers,” says Maersk Ocean & Logistics CEO Vincent Clerc.

Within E-commerce Logistics, Maersk is building an asset-light, global business focused on two core capabilities: B2C Fulfilment and B2C Delivery based on a strong and flexible E-commerce technology backbone. The plan is to build these capabilities in the world’s three largest E-commerce regions: Europe, North America, and Asia. The acquisition of Visible SCM and proposed acquisition of B2C Europe are significant steps on this journey.

Aymeric Chandavoine, Global Head of Logistics and Services in Maersk, says: “The continuous expansion of our logistics product portfolio is supporting our long-term plans to help customers perform better in any business cycle. I’m delighted to welcome Visible SCM and look forward to welcoming B2C Europe, and together upscaling our platform and E-commerce capabilities globally and build what you could call the ‘factory-to-sofa cycle’ defining B2C supply chain success.”

Visible SCM is an industry leader in the US

Visible SCM enables E-commerce businesses to ship cost effectively and deliver quickly so they can compete with the biggest brand names out there today. Visible SCM uses a geographical network that places fulfillment centers closer to the consumer, with less distance and faster delivery. This new capability and infrastructure asset will improve the agility of Maersk customers, helping them to operate faster in an online shopping space where speed and cost of delivery defines consumer buying behavior. One very tangible proof point of this acquisition is that Maersk’s customers can tap into Visible SCM’s E-commerce network to deliver goods to 75 pct. of the US population within 24 hours and reaching 95 pct. of the US geography within a two-day delivery window.

Visible SCM’s CEO, Jared Starling comments: “Integrating our company with Maersk aligns with our values and strategic goal to scale our services to reach more customers with our proven business model. Together we can be a trusted partner across all customers’ supply chains and bring our B2C expertise to Maersk customers with online sales fulfillment, parcel delivery and supply chain visibility in an end-to-end offering.”

Visible SCM operates nine fulfillment centers in the US, complementing Maersk’s current warehouse presence in North America. Visible SCM handles 200,000 orders a day and enables 200 million parcels a year through its proprietary technology solutions with 99.8 pct. order accuracy. This nationwide network of multi-client E-commerce fulfillment centers, combined with their distributed order management system, enables Visible SCM customers to tap into a network solution versus reliance on a single location fulfillment option. This option creates superior consumer service levels by shortening the distance orders travel, compressing time in transit and reducing final mile delivery cost.

B2C Europe has significant reach in Europe

B2C Europe’s core offering is in parcel delivery services for both retailers and brands as well as for logistics operators, with a focus on cross-border deliveries. It operates a multi-carrier platform with a significant reach and volumes into all European countries through an extensive carrier network. The B2C Europe transport management offering provides multi-carrier management tools and track & trace capabilities, supplying customers with control, competitive costs and visibility across supply chains. B2C Europe operates from Western Europe, which serves as a good base for future geographic expansion. The acquisition of B2C Europe will enable Maersk to offer Europe-wide last mile rates to customers through one simplified interface and the convenience of full control and visibility on all parcel deliveries. B2C Europe will bring an asset-light delivery product that uses technical integrations to collect parcels at its customers warehouses and inject them into all important European carrier networks.

B2C Europe’s CEO, José Vega Vazquez, adds: “We are proud and look forward to playing a key part in enabling Maersk to enhance its integrated logistics value proposition. Bringing our expertise and competences together will offer customers a unique opportunity to take control and drive flexibility into their B2C supply chains. We look very much forward to the journey ahead and getting to leverage the strengths of our B2C delivery business with Maersk customers.”

About A.P. Moller – Maersk
A.P. Moller – Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, the company operates in 130 countries and employs 80,000 people.

About Visible Supply Chain Management
Visible SCM is the industry leader in parcel shipping and enables E-Commerce businesses to ship cost effectively so they can compete with the biggest brand names out there today.
Maru Kim
Maru
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