American Eagle Outfitters (AEO) is acquiring Quiet Logistics and strategic investment for $350 million in cash. Quiet Logistics, which operates state-of-the-art in-market fulfillment centers, serves more than 50 DTC and omnichannel brands, including AEO.
The acquisition comes as the retail industry is facing major supply chain challenges, from port congestion to delays impacting the ability to stock shelves with certain products. AEO also recently acquired AirTerra, a parcel shipping company.
Quiet Logistics operates in Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville, Florida, locating products closer to need, creating inventory efficiencies and offering affordable same-day and next-day delivery options to customers and stores.
Quiet Logistics will continue to support AEO while also scaling its customer base to other brands and retailers seeking logistics capabilities. The logistics company will be a wholly-owned AEO subsidiary and run as an independent business.
“An important pillar of our strategy is transforming our supply chain to create greater agility, speed and diversification,” said Jay Schottenstein, AEO’s executive chairman and CEO. “Our vision is to create an on-demand, hyper-scaled operations platform that enables brand success. 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.”