American Eagle Outfitters to Acquire Quiet Logistics and Strategic Investments to Further Enhance Supply Chain Capabilities
November 02 2021 - 7:00AM
Business Wire
Transaction Represents a Key Step in AEO’s Strategic Growth
Plan
American Eagle Outfitters (NYSE: AEO) today announced it has
agreed to acquire Quiet Logistics, Inc. (“Quiet Logistics”) and
strategic investments, for $350 million in cash, marking 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.
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. 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.
“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,” commented Eugene (“Gene”) Gorab, Quiet Logistics’
Executive Chairman.
Advisors
Centerview Partners served as the financial advisor to AEO with
Wachtell, Lipton, Rosen & Katz and Dentons Cohen & Grigsby
serving as legal counsel.
About Quiet Logistics
Founded in 2009, Quiet Logistics is a rapidly growing operator
of state-of-the-art in-market fulfillment centers, and serves over
50 leading DTC and Omnichannel brands. Quiet’s unique strategy
enables product to be positioned close to customers and stores, and
brings speed and freight cost savings to its customers relative to
traditional third-party fulfillment networks. Quiet has a history
of innovation and thought leadership, having created Locus Robotics
warehouse automation systems, and a focus on urbanization,
automation, and access to labor pools outside of traditional DC
hubs, to benefit its customers.
About American Eagle Outfitters, Inc.
AEO is a leading global specialty retailer offering
high-quality, on-trend clothing, accessories and personal care
products at affordable prices under its American Eagle® and Aerie®
brands. Our purpose is to show the world that there’s REAL power in
the optimism of youth. The company 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. For more
information, please visit www.aeo-inc.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release may
constitute forward-looking statements within the meaning of within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements are
based on our current plans and expectations and involve risks and
uncertainties which are, in many instances, beyond our control, and
which could cause actual results to differ materially from those
included in or contemplated or implied by the forward-looking
statements. Such risks and uncertainties include the following: (i)
the occurrence of any event, change or other circumstance that
could give rise to the termination of the definitive transaction
agreement; (ii) the failure to satisfy any of the conditions to the
completion of the proposed transaction; (iii) risks associated with
the disruption of management’s attention from ongoing business
operations due to the proposed transaction; (iv) the ability to
meet expectations regarding the timing and completion of the
proposed transaction, including with respect to receipt of required
regulatory approvals; and (v) other risks and uncertainties
described in our reports and filings with the Securities and
Exchange Commission. Any forward-looking statements contained in
this press release are made only as of the date hereof, and we
undertake no obligation to update forward-looking statements to
reflect developments or information obtained after the date hereof
and disclaim any obligation to do so other than as may be required
by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20211102005684/en/
Olivia Messina 412-432-3300 LineMedia@ae.com
Kelly Whitten Kekst CNC 212-521-4825
kelly.whitten@kekstcnc.com
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