American Eagle buys Quiet Logistics

In an effort to take further control of their supply chain, American Eagle Outfitters (AEO) has bought Quiet Logistics for 350 million dollars in cash. 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 American Eagle, as well as for numerous other consumer brands. Services are offered through a network of centers with locations in Boston, Chicago, Los Angeles, Dallas, St. Louis, and Jacksonville. Centerview Partners served as the financial advisor to American Eagle Outfitters with Wachtell, Lipton, Rosen & Katz and Dentons Cohen & Grigsby serving as legal counsel.

The Quiet network will support AEO’s continued growth while also continuing to work with other retailers. 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 CEO, in a statement. “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. 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,” said Michael Rempell, AEO’s chief operations officer, in a statement.

“We’re excited to join forces with AEO, a fellow industry innovator, to accelerate the adoption of leading-edge fulfillment solutions. 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,” said Eugene Gorab, Quiet Logistics’ executive chairman, in a statement.