American Eagle Outfitters to acquire Quiet Logistics to enhance supply chain capabilities
The Quiet network will support AEO’s continued growth, while also driving economies of scale as it expands its customer base to other brands and retailers seeking advanced logistics capabilities.
American Eagle Outfitters (AEO) today announced it has agreed to acquire Quiet Logistics and other unnamed strategic investments, for $350 million in cash. According to the AEO announcement, the move marks the next step in AEO’s ongoing supply chain transformation.
Quiet Logistics is a supply chain partner that utilizes state-of-the-art technology and robotics and has provided cost-effective in-market fulfillment services for AEO, as well as for numerous other leading consumer brands. Services are offered through a network of modern centers, currently operating in Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville, locating products closer to need, creating inventory efficiencies, and providing affordable same-day and next-day delivery options to customers and stores. The transaction builds upon the recent acquisition of AirTerra as AEO continues to innovate and lead in the current supply chain environment, according to AEO.
The Quiet network will support AEO’s continued growth, while also driving economies of scale as it expands its customer base to other brands and retailers seeking advanced logistics capabilities. AEO expects the transaction to be accretive in the first full year post-closing. Quiet Logistics will be a wholly-owned AEO subsidiary and will continue to run its business independently. The transaction is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act and is expected to close prior to year end.
“We continue to be extremely pleased with the pace of our business and are executing well against our Real Power. Real Growth. plan. An important pillar of our strategy is transforming our supply chain to create greater agility, speed and diversification. Our vision is to create an on-demand, hyper-scaled operations platform that enables brand success,” said Jay Schottenstein, AEO’s Executive Chairman and Chief Executive Officer. “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.”
“A reliable and consistent in-market fulfillment network is vital in today’s marketplace,,” added Michael Rempell, AEO’s Chief Operations Officer. “The Quiet Logistics team shares our vision for an asset-light, technology-led supply chain network and brings strong expertise. 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 driving ongoing advantages for our brands and its high-value customer base.”
“We’re excited to join forces with AEO, a fellow industry innovator, to accelerate the adoption of leading edge fulfillment solutions,” commented Eugene (“Gene”) Gorab, Quiet Logistics’ Executive Chairman. “Through a shared distribution network, our customers gain significant operational advantages, enabling them to focus more intently on increasing the value of their brands and products.”
