Yesterday on June 2 in Copenhagen, Maersk announced the closing of the acquisition of Senator International, a well-renowned global company in freight forwarding.
In its announcement, Maersk builds its newest addition by describing it as having “a strong organization and a well-developed airfreight network comprising own controlled flights and long-term partnerships with best-in-class airlines, a well-established full container load (FCL) and less than container load (LCL) network and specialized services such packaging, warehousing and distribution across five continents.”
The addition of Senator International to Maersk could further the company’s abilities to offer a more comprehensive range of products. The obtaining of Senator International also grants Maersk the ability to provide their customers with flexible and comprehensive logistics solutions that allow them to speed up or slow down goods based on their ever-changing supply chain needs.
In the press release, Maersk mentions the effects of Covid on the waterways, saying that it led to an apparent supply chain disruption, not to mention congestion and production issues. To remedy the damage caused by the pandemic, more and more customers are requesting alternative cargo transport methods.
Maersk further buried its faith in its newly acquired company after stating that the Senator International “will add their broad industry expertise and product knowledge to Maersk’s existing network and thus provide customers with increased flexibility and redundancy in their supply chains.”
Tim-Oliver Kirschbaum, CEO of senator International showed mutual feelings when he expressed nothing but excitement about the conjoining of the companies, “By joining Maersk, our customers will have access to a broader portfolio of products for their business needs and provide them with a single point of contact. It’s a perfect match, and we are excited about the next chapter in our united journey.”
As announced on November 2, the transaction’s enterprise value on a post-IFRS 16 basis is roughly USD 644 million, assuming a constant FX rate. Maersk hopes to have approximately one-third of its annual air cargo carried within the company’s controlled freight network, which will they say in their statement can be achieved through a combination of owned and leased aircraft.
