Maersk makes headway in the internal integration with Senator International rebrand
COPENHAGEN : A.P. Moller – Maersk completes acquisition of Senator International and proceeds in the next stage of its internal integration which began to phase out from1 February and going to market as Maersk.
The Copenhgahen-headquartered shipping company explained that the legal entities of Senator will remain unchanged for the time being, but Senator’s products and services will now be available under Maersk.
This announcement comes only a few days after Maersk’s decision to integrate two other subsidiaries, Hamburg Süd and Sealand.
“We continue to transform our company, with the objective of providing you with high quality transport and logistics solutions and ensuring that we remain a partner that you can trust. We intend to integrate to a unified, single entity under Maersk,” said the Danish firm in a statement.
Senator team members have also been onboarded to Maersk, according to the announcement.
“We believe this [integration] will bring more connectivity, agility and resilience to our customers’ supply chain, with enhanced options and solutions,” stated Maersk.
Integrated logistics solutions
Senator brings with it a strong organisation and a well-developed airfreight network comprising its 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 specialised services such packaging, warehousing, and distribution across five continents.
The acquisition will enable Maersk to offer an even wider range of products and the ability to provide flexible and integrated logistics solutions to the customers, allowing them to speed up or slow down cargo depending on their changing supply chain needs.
With Senator, we are ramping up our air freight capacity, network, and know-how significantly to cater customers”
“We are delighted to welcome the Senator team to our Maersk family. As a global provider of integrated logistics, we are improving our ability to provide end-to-end solutions to our customers,” said Vincent Clerc, CEO of Ocean & Logistics, A.P. Moller-Maersk.
“With Senator on board, we are ramping up our air freight capacity, network, and know-how significantly to cater even better for our customers.”
In the past two years, knock-on effects of COVID-19 have led to widespread congestion and production issues. As a result, more customers are requesting alternative means of cargo transportation.
Senator 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. The enterprise value of the transaction on a post-IFRS 16 basis is approximately USD 644m as announced on the 2nd of November assuming an unchanged FX rate.
By joining Maersk, our customers will have access to a broader portfolio of products for their business needs”
“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,” said Tim-Oliver Kirschbaum, CEO of Senator International.
Senator’s deep experience and solid transport network will be key to the continued joint success and will bring new opportunities to our customers under the Maersk brand.
Aim of acquisition
Maersk’s ambition is to have approximately one-third of the annual air tonnage carried within its controlled freight network, which will be achieved through a combination of owned and leased aircraft.
The remaining capacity will be provided by strategic commercial carriers and charter flight operators.