American Eagle acquires robotic logistics company for $ 350 million

American Eagle Outfitters continues to transform its supply chain.

The specialty clothing retailer has agreed to acquire Quiet Logistics Inc. and strategic investments for $ 350 million in cash. Quiet Logistics operates a network of logistics centers, which use advanced technology, including robotics, in Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville.

The centers are designed to locate products closer to need, create inventory savings, and provide affordable same-day and next-day delivery options to customers and retailers. Quiet Logistics is also the creator of Locus Robotics warehouse automation systems.

American Eagle acquires Quiet Logistics following the September 2021 acquisition of Terra, a brand new logistics startup co-founded by Brent Beabout, who has held leadership roles in the supply chain at Nordstrom and Walmart. AirTerra’s system consolidates parcels from several shippers via its own network in major metropolitan areas.

American Eagle plans to use Terra to further leverage its network of stores and distribution centers to more efficiently fulfill orders and offer same-day service. The retailer has increased its investments in its supply chain capabilities. In June 2021, it said it had reduced its average shipping time by 1.5 days.

It’s also worth noting that the US Eagle-Terra deal was the first time that a specialty retailer purchased their own last mile delivery service, which saw them compete in terms of same-day and last-day delivery. kilometer.

According to American Eagle, the acquisition of Quiet Logistics marks the next step in its “continuous supply chain transformation”. Quiet Logistics has provided market fulfillment services for American Eagle, as well as for many other consumer brands.

The Quiet Network will support the continued growth of American Eagle (revenue increased 35% in its last fiscal quarter as it went from a net loss to a profit), while generating economies of scale as it expands its customer base to other brands and retailers. American Eagle expects the transaction to be accretive within the first full year after closing. Quiet Logistics will be a wholly owned subsidiary of American Eagle and will continue to manage its business independently. The transaction is subject to customary closing conditions, including authorization under the Hart-Scott-Rodino Act and is expected to close before the end of the year.

“We continue to be extremely satisfied with the pace of our business and are doing well with our ‘Real Power’. Real growth. ‘ plan. An important pillar of our strategy is to transform our supply chain to create more agility, speed and diversification. Our vision is to create an on-demand, large-scale operations platform that enables brand success, ”said Jay Schottenstein, Executive Chairman and CEO of American Eagle. “Quiet Logistics has brought significant benefits to AEO over the past year and we are leveraging our strong cash position to ensure continued benefits. Additionally, as we continue to expand these services to other brands and retailers, we believe the business will evolve, generating added value for our shareholders. “

“A reliable and consistent market execution network is vital in today’s market. The Quiet Logistics team shares our vision for a technology and asset driven supply chain network, and brings strong expertise, ”said Michael Rempell, COO of American Eagle. “This transaction will formalize our successful partnership, provide control and flexibility within our operations and accelerate the growth of Quiet Logistics. We look forward to generating continued benefits for our brands and its high-value customer base. ”

“We are delighted to join forces with American Eagle, another industry innovator, to accelerate adoption of leading edge execution solutions,” said Eugene (“Gene”) Gorab, Executive Chairman by Quiet Logistics. “Through a shared distribution network, our customers enjoy significant operational advantages, allowing them to focus more intensely on increasing the value of their brands and products. ”

Centerview Partners has served as financial advisor to American Eagle Outfitters Inc., with Wachtell, Lipton, Rosen & Katz and Dentons Cohen & Grigsby as legal counsel.

American Eagle Outfitters Inc. operates stores in the United States, Canada, Mexico, and Hong Kong, and ships to 81 countries around the world through its websites.

Source link

Comments are closed.