AP Moller-Maersk is moving into the business-to-consumer (B2C) industry with the acquisition of e-commerce logistics companies in Europe and the US.
In a statement, the Danish international container shipping company said it is acquiring Visible Supply Chain Management (Visible SCM) in a US$838 million deal and is also bent on buying B2C Europe Holding for US$86 million.
"The acquisition of Visible Supply Chain Management and intended acquisition of B2C Europe Holding B.V. by A.P. Moller - Maersk will add business-to-consumer expertise to the company’s end-to-end logistics offering, addressing customers’ growing needs for e-commerce solutions," Maersk said.
Visible SCM is a B2C logistics company focused on B2C parcel delivery and B2C fulfillment services in the US and headquartered in Salt Lake City, Utah.
Furthermore, it announced the intention to acquire B2C Europe, another B2C logistics company focused on B2C parcel delivery services in Europe and based in The Netherlands.
The acquisition will see Maersk move into B2C from its previous focuse of serving the business-to-business (B2B) sector.
Maersk said both companies are well-established and recognised players in the e-commerce logistics industry.
Tapping into the potential of e-commerce logistics
The Danish shipping line said 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 liner added, noting that 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," said Maersk Ocean & Logistics CEO Vincent Clerc.
He added that customers nowadays rely on the integrated logistics approach and services which Maersk offers.
"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," Clerc added.
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.
"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," commented Visible SCM’s CEO, Jared Starling.
Meanwhile, 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.
B2C Europe operates from Western Europe, which serves as a good base for future geographic expansion. Maersk noted that the acquisition of B2C Europe will enable it 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.
"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," said B2C Europe’s CEO, José Vega Vazquez.
Building e-commerce capabilities in Europe, US, Asia
Maersk said within e-commerce Logistics, it 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," the shipping line said.
The definitive transaction agreements for Visible SCM were signed on June 28, while the definitive transaction agreements for the B2C Europe deal were signed on August 5 — with the transaction subject to closing conditions including regulatory approvals expected to close in Q4 2021.