A.P. Moller – Maersk (Maersk) has announced its intention to acquire Senator International, a German freight forwarding company with a strong air freight offering.
To expand its own controlled air network, Maersk also said it is adding aircraft to its operations: three leased cargo planes to be operational from 2022 and two newbuilding Boeing aircraft to be deployed by 2024.
Maersk noted that air freight is a "crucial enabler" of flexibility and agility in global supply chains as it allows companies to tackle time-critical supply chain challenges and provides transport mode options for high value cargo.
To better cater to customers´needs, Maersk said it aims to increase its presence in the global air cargo industry.
"To accelerate its product offering which integrates Logistics, Ocean, Rail and Air and expand its global air network, Maersk intends to acquire Senator International, a company with a renowned operational air freight platform of own controlled capacity and operations across Europe, Asia, South Africa, and America," it said in a statement.
In addition, Maersk is purchasing two new B-777F and leasing three B767-300 cargo planes.
Maersk noted that to operate and manage this added capacity, the cargo airline Star Air – the internal air cargo operation of Maersk established in 1987 - will become a key vehicle supporting Maersk’s logistics offering.
End-to-end logistics
"As a global provider of integrated logistics, Maersk is improving the ability to provide a one-stop-shop and end-to-end logistics capabilities to our customers. We have strengthened our integrated logistics offering through E-commerce logistics acquisitions, tech investments, expanding our warehouse footprint and, as a natural next step, we are now ramping up our air freight capacity significantly and creating a broader network to cater even better for the needs of customers," said Vincent Clerc, executive vice president and CEO of Ocean & Logistics, A.P. Moller – Maersk.
Maersk said Senator has built a renowned airfreight operation centered around own controlled capacity using nineteen weekly flights across its network.
It operates a significant part of their business through a dedicated air bridge with own controlled capacity and ensuring a high service level for its customers.
Maersk said this focus on own controlled capacity is highly aligned with Maersk's air freight strategy.
"By joining Maersk, we strongly believe that we will be able to deliver an even broader portfolio with own controlled air capacity as well as also in other modes of transportation. Senator's customers and team will love it," said Tim-Oliver Kirschbaum, CEO and shareholder at Senator.
Deal valued at US$644M
Maersk said the enterprise value of the transaction on a post IFRS 16 basis is approximately US$644 million which based on pro-forma adjusted 2021 EBITDA corresponds to a multiple of 8.0x.
Maersk said the transaction is subject to closing conditions including regulatory approvals and is expected to close in H1 2022.
"Maersk’s ambition is to have approximately one third of its annual air tonnage carried within its own controlled freight network. This will be achieved through a combination of owned and leased aircraft, replicating the structure that the company has within its ocean fleet. The remaining capacity will be provided by strategic commercial carriers and charter flight operators," the ocean carrier said.
Meanwhile, Maersk said as an in-house aircraft operator, Star Air will operate and maintain owned and leased aircraft for Maersk while continuing to operate air cargo for its current customers.
As an integral part of building the own controlled air capacity, Star Air has purchased two new B-777 Freighters to be delivered by Boeing in 2024 and leased three B767-300 Freighters which will be operational next year through Cargo Aircraft Management, the leasing arm of ATSG.
