Forwarding, Freight News

Analysts see M&A surge

[ April 4, 2016   //   Chris ]

The total value of completed Freight & Logistics mergers and acquisitions has more than quadrupled from £7.2bn in 2013 to £31.4bn in 2015, according to KPMG’s latest Transport Tracker. Further transactions worth approximately £33.2n were announced during the year, it added.
Asset-light logistics operators with advanced IT systems have, in recent years, been popular acquisition targets for large logistics providers and freight forwarders. “However, we increasingly see that that “leaner” logisticians are looking for assets and (reliable) networks to supplement their services. Examples include the acquisition of US logistics company Coyote Logistics (high-tech / asset-light business model) by UPS worth £1.2bn, and the takeover of the French forwarder Norbert Dentressangle by XPO Logistics for £1.8bn,” KPMG points out.
Following the £3.3bn acquisition of TOLL Logistics by Japan Post in 2015 (which will transform the business model of the postal service operator towards a full-service logistics provider); the anticipated completion of the FedEx TNT deal (£3.1bn) will set the basis for another big year in M&A.

Tags: KPMG