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American Eagle Outfitters to acquire Quiet Logistics

American Eagle Outfitters to acquire Quiet Logistics


Fashion United 20211102

https://fashionunited.com/executive/management/american-eagle-outfitters-to-acquire-quiet-logistics/2021110243366


Lifestyle and apparel retailer American Eagle Outfitters (AEO) has announced it has agreed to acquire fulfilment centre operator, Quiet Logistics. The acquisition will see the supply chain partner support AEO’s continued growth, while expanding on its own customer base to other retailers seeking logistics capabilities.

With an agreement settled on for 350 million dollars in cash, the two companies will continue to work together on in-market fulfilment services for AEO, utilising technology and robotics in its supply chain operations. The service currently operates throughout the US, including in Boston, Los Angeles and Jacksonville, providing same-day and next-day delivery options to customers and stores.

“An important pillar of our strategy is transforming our supply chain to create greater agility, speed and diversification,” said Jay Schottenstein, AEO’s executive chairman and CEO, in a statement. “Our vision is to create an on-demand, hyper-scaled operations platform that enables brand success.” He continued: “Quiet Logistics has provided significant benefits to AEO over the past year and we are leveraging our healthy cash position to ensure ongoing advantages. Also, as we continue to expand these services to other brands and retailers, we believe the business will scale, generating incremental value for our shareholders.”

The retailer, which also owns intimates label Aerie, anticipates the transaction to be accretive in the first full year post-closing, with the expectation to close prior to the end of 2021. It had stated that Quiet Logistics will continue to run independently as a wholly-owned AEO subsidiary. The move closely follows that of AEO’s recent acquisition of parcel shipping company AirTerra, with both the transactions associated with the retailer’s ongoing growth in its supply chain advancement.