A.P. Moller – Maersk aims to develop its air freight transportation network, unveiling plans to acquire the freight forwarding company Senator International, which specialises in air freight.
By the acquisition of the German company, operating across Europe, Asia, South Africa, and America, the Danish Group aims to enhance its product offering which integrates Logistics, Ocean, Rail and Air.
Maersk will also expand its own controlled air network with the addition of three leased B767-300 cargo planes in its fleet that will be operational from next year through Cargo Aircraft Management, and two newbuilding B777F Freighters aircraft which are expected to be delivered by Boeing in 2024.
The cargo airline Star Air, which is the internal air cargo operation of Maersk, will operate and manage this added capacity to support the company’s logistics offering, continuing to operate air cargo for its current customers.
Maersk stated it will increase its presence in the global air cargo industry to better cater to customers’ needs, given 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.”
“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,” said Vincent Clerc, Executive Vice President and CEO of Ocean and Logistics at A.P. Moller – Maersk.
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,” he added.
Senator International has built a renowned airfreight operation centred around its own controlled capacity using nineteen weekly flights across its network and through its Cargo Wise One core operating platform, it will accelerate the integration with Maersk’s Air and LCL (Less than Container Load) products, according to Maersk’s statement.
Tim-Oliver Kirschbaum, CEO and shareholder at Senator, said, “founded by my father Uwe Kirschbaum in 1984, Senator has grown to a sizable global freight forwarder. Senator’s own controlled air product started in 2016 and has proven to be a success story. Our customers honour our reliability – particularly in challenging times during the pandemic.”
Kirschbaum pointed out that the agreement with Maersk will give Senator the ability to deliver an even broader portfolio with own controlled air capacity as well as also in other modes of transportation.
The enterprise value of the transaction on a post-International Financial Reporting Standards (IFRS) 16 basis is approximately US$644 million which corresponds to a multiple of 8.0x, based on pro-forma adjusted 2021 Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA).
According to an announcement by Maersk, the transaction is subject to closing conditions including regulatory approvals, and is expected to close by the first half of the next year.
Maersk explained that its ambition is to have approximately one third of its annual air tonnage carried within its own controlled freight network and 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, noted the Danish carrier.
