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Aug 8, 2021 at 8:24 PMThe acquisition of Visible Supply Chain Management and the intended acquisition of B2C Europe Holding B.V. by A.P. Moller – Maersk will expand the group’s end-to-end logistics offering with business-to-consumer expertise and meet the growing customer demand for e-commerce solutions.
(Copenhagen) A.P. Moller – Maersk (Maersk) today announced the acquisition of Visible Supply Chain Management (Visible SCM), a business-to-consumer (B2C) logistics company focused on B2C parcel deliveries and B2C fulfillment services in the USA, headquartered in Salt Lake City, Utah, USA. Additionally, the company announced its intention to acquire B2C Europe Holding B.V. (B2C Europe), a business-to-consumer logistics company based in the Netherlands that focuses on B2C parcel delivery services in Europe. Both companies are established and recognized players in the e-commerce logistics industry.
Leveraging E-Commerce Logistics Potential
Rapidly changing purchasing patterns and digital platforms are accelerating online consumption and redefining business models worldwide. Many Maersk customers are experiencing strong revenue growth in e-commerce as they implement digital-first strategies and seek support for their growth in the business-to-consumer supply chain. The two acquisitions will address this customer trend and strengthen Maersk’s e-commerce logistics product suite in line with the strategic business transformation.
“Maersk aims to build strong e-commerce logistics capabilities that expand and strengthen our existing supply chain offering and create growth opportunities. Today, customers rely on the integrated logistics approach and services that Maersk provides. By combining with the operating models and value propositions of Visible SCM and B2C Europe, we enable our customers to further develop their e-commerce offerings, thereby expanding 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 digitization and integration will create significant synergies and make a big difference in our customers’ ability to sell effectively across multiple channels. Furthermore, they will allow us to have a more comprehensive offering for small and medium-sized customers,” says Vincent Clerc, CEO of Maersk Ocean & Logistics.
Global Asset-Light Business
Within e-commerce logistics, Maersk is building a global asset-light business focused on two core competencies: B2C fulfillment and B2C delivery, based on a strong and flexible e-commerce technology backbone. These capabilities are planned to be developed in the three largest e-commerce regions: Europe, North America, and Asia. The acquisition of Visible SCM and the planned acquisition of B2C Europe are important steps on this path.
Aymeric Chandavoine, Global Head of Logistics and Services at Maersk, says: “The continuous expansion of our logistics product portfolio supports our long-term plans to help customers perform better in every business cycle. I am excited to welcome Visible SCM and look forward to welcoming B2C Europe and enhancing our platform and e-commerce capabilities globally together, building what could be called the ‘factory-to-sofa cycle’ that defines the success of the B2C supply chain.”
Visible SCM is an Industry Leader in the USA
Visible SCM enables e-commerce companies to ship cost-effectively and deliver quickly, allowing them to compete with today’s biggest brand names. Visible SCM utilizes a geographic network that places fulfillment centers closer to the consumer, reducing distance and speeding up delivery. These new capabilities and infrastructures will enhance the agility of Maersk customers and help them operate faster in an online shopping space where consumer purchasing behavior is determined. A very tangible proof of this acquisition is that Maersk customers can utilize Visible SCM’s e-commerce network to deliver goods within 24 hours to 75 percent of the U.S. population and reach 95 percent of U.S. geography within a two-day delivery window.
Jared Starling, CEO of Visible SCM, comments: “The integration of 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 in all supply chains of all customers and bring our B2C expertise in online sales fulfillment, parcel delivery, and supply chain transparency into an end-to-end offering for Maersk customers.”
Visible SCM operates nine fulfillment centers in the USA, complementing Maersk’s existing warehouse presence in North America. Visible SCM handles 200,000 orders per day and enables 200 million packages per year through its proprietary technology solutions with an order accuracy of 99.8 percent. This nationwide network of multi-client e-commerce fulfillment centers, combined with their distributed order management system, allows Visible SCM customers to leverage a network solution instead of relying on a single-site fulfillment option. This option creates superior service levels for consumers by shortening distance routes, reducing transit times, and lowering last-mile delivery costs.
B2C Europe Has a Wide Reach in Europe
B2C Europe’s core offering lies in parcel delivery services for retailers and brands, as well as for logistics companies focused on cross-border deliveries. It operates a multi-carrier platform with significant reach and volume across all European countries through an extensive carrier network. B2C Europe’s transport management offering provides multi-carrier management tools and track & trace features that give customers control, competitive costs, and transparency 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 customers Europe-wide last-mile rates through a simplified interface and the convenience of full control and transparency over all parcel deliveries. B2C Europe will bring an asset-light delivery product to the market that utilizes technical integrations to pick up packages from its customers’ warehouses and integrate them into all major European carrier networks.
José Vega Vazquez, CEO of B2C Europe, adds: “We are proud and excited to play a key role in enabling Maersk to enhance its integrated logistics value proposition. The combination of our expertise and capabilities offers customers a unique opportunity to take control and bring flexibility into their B2C supply chains. We are very much looking forward to the upcoming journey and leveraging the strengths of our B2C delivery business with Maersk customers.”
About the Transactions
Visible SCM: The final transaction agreements were signed on June 28. Since then, all regulatory approvals and closing conditions have been obtained and/or fulfilled, and the parties successfully completed the transaction on August 2. The enterprise value of the transaction is USD 838 million according to IFRS 16, representing an EV/EBITDA of 13x, reflecting strong growth prospects and synergies. Based on the 2021 forecast, revenue is estimated at around USD 550 million, with an EBITDA according to IFRS 16 of around USD 65 million, representing a margin of 11.8 percent.
B2C Europe: The final transaction agreements were signed on August 5. The transaction is subject to closing conditions, including regulatory approvals, and is expected to close in Q4 2021. The enterprise value of the transaction is USD 86 million according to IFRS 16, representing an EV/EBITDA of 11x, reflecting strong growth prospects and synergies. Based on the 2021 forecast, revenue is estimated at around USD 140 million, with an EBITDA according to IFRS 16 of around USD 8 million, representing a margin of 5.7 percent.
By 2023, cumulative synergies for both transactions of USD 40 million on EBITDA are expected, excluding transaction and integration costs.
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