A.P. Moller - Maersk (Maersk) is looking to expand its project logistics business as it announced a US$61 million deal to acquire Danish project cargo provider, Martin Bencher Group.
Martin Bencher specialises in project logistics. Maersk noted that its core capability is designing end-to-end project logistics solutions for global clients.
"Maersk has reached an agreement to acquire Martin Bencher Group, a Denmark-based project logistics company with premium capabilities within non-containerised project logistics," the Danish shipping company said.
Maersk Project Logistics
Maersk said with the intended acquisition of Martin Bencher, Maersk will also introduce a new product, Maersk Project Logistics.
"Martin Bencher will be an excellent fit for Maersk and our integrator strategy, strengthening our ability to provide project logistics services to our global clients," said Karsten Kildahl, regional managing director in Europe of Maersk.
"In addition to supporting our existing customers' project logistics needs, we will also be able to provide a more comprehensive offering to a wide array of industries," Kildahl added.
Maersk noted that project logistics requires managed transportation capabilities with deep technical specialist knowledge around specific supply chain elements such as handling oversized and special lift cargo, conducting road surveys, and delivery planning as well as offloading and assembly of the equipment on sites.
Project logistics includes the uplift of large-scale projects including renewable energy, pulp, and paper, power generation, mining, automotive, aid and relief, government-contracted logistics, and industrial manufacturing.
"Project logistics is not new to Maersk, as the company already has niche competencies based mainly in Europe and North America," Maersk said, noting, however, that in order to expand and mature the service offering, existing activities will be consolidated into a global product offering, benefitting the clients.
Together with the proposed acquisition of Martin Bencher, this will enable Maersk to significantly accelerate its project logistics capabilities, Maersk further said.
"We are thrilled to become an integral part of Maersk, which we see as an ideal fit for our people and clients. Clients requiring project logistics are aware of the constraints and challenges facing them and are seeking strategic partners with sufficient ambitions and strength to handle their entire global supply chain now and in the years to come," said Peter Thorsoe Jensen, CEO of Martin Bencher.
"Together with Maersk, we will have the scale, commitment, and capabilities to handle the entire logistics scope of work for clients around the world – as well as expand into new industries," Jensen added.
Martin Bencher Group is headquartered in Aarhus, Denmark, and has a presence in key locations globally through 31 offices in 23 countries, with almost 170 employees.
US$61M transaction
Maersk noted that the value of the transaction is US$ 61 million (enterprise value) post-IFRS 16 lease liabilities, reflecting an EV/EBITDA multiple of 7.1 based on estimated EBITDA for the full-year 2021.
The Danish shipping line said until obtaining all required regulatory approvals and closing the transaction, Maersk and Martin Bencher Group remain two separate companies and thus will run their businesses independently as usual.
Project logistics is a specialised service offering within the global logistics industry that covers the combination of solution design, special cargo transportation, and project management services - including detailed planning, orchestration, and sequencing of end-to-end shipments from suppliers to destination sites.
