American Eagle completes acquisition of Quiet Logistics
American Eagle Outfitters continues to transform its supply chain with added logistics capabilities.
The specialty apparel retailer has completed its acquisition of Quiet Logistics for approximately $360 million in cash (including adjustments for closing cash and working capital). The logistics company operates a network of fulfillment centers, which utilize state-of-the-art technology including robotics, in Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville. The centers are designed to locate products closer to need, creating inventory efficiencies and providing affordable same-day and next-day delivery options to customers and stores.
Quiet Logistics, which will be a wholly-owned subsidiary of American Eagle, will continue to run its business independently. The network will support the retailer’s continued growth, while also driving economies of scale as it expands its customer base to other brands and retailers seeking advanced logistics capabilities, according to American Eagle.
American Eagle’s purchase of Quiet Logistics follows its September 2021 acquisition of Terra, a new logistics startup cofounded by Brent Beabout, who served in executive supply chain roles at Nordstrom and Walmart. AirTerra’s system aggregates packages from multiple shippers through its own network in major metropolitan areas. The American Eagle-Terra deal was the first time a specialty retailer purchased its own last-mile delivery service, enabling it to compete in terms of same-day and last-mile delivery.
“I am thrilled to officially welcome Quiet Logistics into the AEO Inc. portfolio, cementing a collaborative partnership that has meaningfully contributed to our financial results over the past 18 months,” said Jay Schottenstein, executive chairman and CEO, American Eagle Outfitters. “AEO’s unique ability to reduce delivery costs amid rising inflation is a direct reflection of the efficiencies provided by their innovative fulfillment model. Quiet Logistics has a highly experienced supply chain leadership team and I look forward to their partnership as we continue to drive operational excellence and grow the platform into a meaningful business.”
American Eagle Outfitters operates stores in the United States, Canada, Mexico, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 200 international locations operated by licensees in 33 countries.