As issues in the supply chain continue to make headlines, American Eagle Outfitters (AEO) has bought its second logistics company in less than three months. Following the acquisition of parcel delivery company AirTerra in late August, the retailer this week acquired in-market fulfillment operator Quiet Logistics for $350 million in cash.
Hailed by the retailer as the next step in “AEO’s ongoing supply chain transformation,” Quiet Logistics uses state-of-the-art technology and robotics to provide cost-effective, in-market fulfillment services for AEO and a number of other consumer brands, including Outdoor Voices, Summersalt and Primary. Services are offered through a network of fulfillment centers — currently operating in Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville, Fla. — designed to locate products closer to need, create inventory efficiencies and provide affordable same-day and next-day delivery services.
Quiet Logistics will be a wholly owned AEO subsidiary and will continue to run its business independently.
“Our vision is to create an on-demand, hyper-scaled operations platform that enables brand success,” said Jay Schottenstein, Executive Chairman and CEO of AEO 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,” said Michael Rempell, Chief Operations Officer of AEO in a statement. “The Quiet Logistics team shares our vision for an asset-light, technology-led supply chain network and brings strong expertise.”