Tuesday 20th Aug 2019 - Logistics Manager Magazine

48 pc rise for logistics mergers

UK transaction volumes in the logistics and supply chain management industry rose 48 per cent in 2018 according to BDO’s latest Logistics & Supply Chain Management M&A Review.

UK & Ireland average deal value dropped by almost 60 per cent, demonstrative of a shift towards high volumes of mid-market deals, said DBO. This continued in Q1 2019, where UK deal activity outperformed Q1 in 2018 and 2017.

BDO’s logistics & supply chain management lead and M&A partner Jason Whitworth.

Aggregate deal value was up, reaching £32.4 billion globally and £830 million in the UK & Ireland.

Globally the review noted steady deal activity with volumes up by 1.1 per cent but with a significant shift to larger deals. This included six mega deals with an excess of £1 billion in 2018, pushing the average deal value up 90 per cent.

“In a rapidly changing and increasingly competitive market, the level of investment and transactional activity in the Logistics and Supply Chain sector has remained strong,” said BDO’s logistics & supply chain management lead and M&A partner Jason Whitworth.

“With a continued focus on change, there are pockets of real opportunity within the sector and businesses embracing technology and differentiating their service proposition represent extremely attractive investments.”