Monday 17th Dec 2018 - Logistics & Supply Chain

Logistics M&A deals hit new high

The total disclosed value of mergers and acquisition (M&A) deals transacted in the global transport and logistics industry last year rose to €55bn, an increase of 8.6 per cent over the previous year. These are the findings of a survey included in Transport Intelligence’s latest report, Global Logistics Strategies 2007, just published.
 
The survey also reveals that the vast majority of these funds were invested in ports, airports and other transport infrastructure operations. The contract logistics, freight forwarding and express sectors accounted for just eight per cent of the total. In terms of deal volumes, however, most were transacted in the contract logistics sector – 14 per cent of the overall total.
 
Looking in more detail at contract logistics, the top three deals in the sector accounted for 82 per cent of the total value. This was mainly due to private equity company Apollo’s acquisition of Ceva (TNT Logistics) from TNT and DSV’s acquisition of Frans Maas.
 
Commenting on the state of mergers and acquisitions in the logistics industry, John Manners-Bell, Ti’s Chief Analyst said: ‘Acquisitions are being driven by the ambitious growth plans of large and small companies alike. This will ensure that M&A activity remains at a high rate for the foreseeable future. The recent acquisitions of Christian Salvesen by Norbert Dentressangle and Rohde & Liesenfeld by Geodis are evidence of such ambition in both companies’ desire to build regional or even global operations. The combination of market fragmentation and ambition will also continue to make the sector attractive for private equity (PE) companies looking for arbitrage deals. PE backed deals amounted to €16,105m last year, a third of the total. Despite an uncertain economic outlook, we expect many more deals in the near future.’
 

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