M&A in transportation, logistics and forwarding

Mergers and Acquisitions in transportation services

The transport and logistics market is an industry which is undergoing a fundamental change and restructuring. This is due to various factors like globalization, the further integration of the European market and the transition from an industrial economy to a networked economy. Communication technologies have contributed to minimizing time delivery and to possibilities for transportation and logistics businesses to serve large geographical regions. All this has resulted in a new business environment characterized by an intense competition between transport and logistics firms and more M&A (mergers & acquisition) activity in the transportation, forwarding and logistics industry.

Outlook transportation market

In the coming years the transportation market is expected to show a growth of an average 5%. An increasing market growth for transportation will also mean growth for logistics and forwarding. The transportation market normally follows the total worldwide economic situation. The average growth indicates low m&a activity, but other trends like globalization and the maturing European market point to another direction. Most m&a activity is expected to be found in freight forwarding.

The earning capacity of the industry is likely to improve from weak to average. The different segments can also be substitutes for each other. Barriers of entry are low for road transport to high for rail freight and air freight due to market entrance hurdles. This makes the threat of newcomers from high for road freight to very low for rail freight. The competition in the transportation market is moderate to strong, several substitutes also directly compete. Supplier power for key inputs might be an issue for many companies.

Leading companies in transportation and logistics

• A.P. Moller-Maersk Group
• Deutsche Post DHL
• TNT NV

A.P. Moller-Maersk maintains a global presence with operations in 130 countries all over the world. Main activities in transportation can be found in freight forwarding and carriage and logistics. The group’s customer base can be found in retail, electronics, fast moving consumer goods (FMCG), chemicals, oil and gas and other industries. The group exists of six divisions: container and shipping related activities; oil and gas activities; retail activities; tanker, offshore related activities; APM terminal and others. Freight forwarding activities are marketed under the name Damco. Mearsk Logistics is used for the global supply chain management solutions. The group has not shown significant m&a activity in the recent years.

Deutsche Post DHL is the leading postal and logistics group in the world. Its integrated DHL and Deutsche Post brands offer comprehensive services in international express, air and ocean freight, road and rail transportation and contract logistics. It also offers dialogue marketing and press distribution services as well as corporate communications solutions. The company operates through four divisions: mail; express; global forwarding/freight; and supply chain/CIS (corporate information solutions).Deutsch post has shown some m&a activity in the past years. The latest acquisition was nugg.ad AG. In freight forwarding a joint venture was formed with Trade Clippers Cargo in Bangladesh. Two activities were sold, one in the UK and one in France to the French private equity firm Caravelle.

TNT is a Netherlands-based transportation services company and is engaged in the business of transferring goods and documents with a focus on pick up and delivery. The company operates in Europe and North America. TNT provides mail and express delivery services for businesses and consumers all over the world. The physical handling is combined with electronic infrastructures, such as billing and track-and-trace systems, and commercial infrastructures for customers.

TNT serves more than 200 countries and operates through three business segments: express, mail and other networks. Recently TNT showed some m&a activity by acquiring a minority stake in Adrexo Colis

Corporate Finance in Europe and the logistics / transportation industry

Large companies in the logistics and transportation industry are very active in M&A (mergers & acquisitions) buying activity especially when it concerns a freight forwarding company. However, it needs to be assured that each purchase of a company adds value and the integration is executed until the last detail in order to benefit from the strategic advantages the selling forwarding company is offering. Through the M&A activities (sell and buy side mandates) in the transportation industry the management of Corporate Finance in Europe has a large number of contacts at board level with strategic buyers such as Broekman Group, DSV, Gondrand Switzerland, Maersk, Sea and Shore, ABXLogistics and others. Therefore, Corporate Finance in Europe has a good understanding of the requirements and strategies of most companies in the logistics and transportation industry and can help potential sellers with a success full sale of their logistics/transportation or forwarding company.

M&A advisory in Transportation and Logistics

The team members of Corporate Finance in Europe have large M&A experience in Transportation. This m&a experience includes freight forwarding and logistics. The network members of Corporate Finance in Europe have been involved in selling and buying  companies valued between 2M and 100M Euro. The Transportation and Logistics businesses that were sold normally have 20 to 400 or more employees and revenues ranging from 2M to 100M Euro. Check our teams knowledge and competences in m&a advisory transportation and logistics

Business brokers for the transportation services sector

Corporate Finance in Europe  has several businesses for sale in transportation services at this moment. Some of these businesses are listed in business brokerage transportation logistics

Business cases in Logistics and Forwarding

Being an m&a advisor in the Corporate Finance in Europe network means having experience in the transportation industry. From some of our closed deals we have made a specific description . We have selected the following mergers and acquisitions  transactions;

• M&A deal in freight forwarding
• M&A deal in transportation services
• M&A deal in freight forwarding
• M&A deal in logistics

M&A Deals and transactions

Corporate Finance in Europe is constantly monitoring the m&a market of transportation and speaking to Corporate heads of M&A departments at large buyers. To perform merger and acquisitions successfully means being aware of the requirements and demands by current buyers. On recent M&A deals we can give you some important comments. Learn more and follow M&A deals and transactions in transportation services

We are happy to help you. If you have serious M&A plans in transportation and especially in freight forwarding we invite you to contact us by email or phone so we can send you our M&A in transportation presentation  and explain how we can help you with mergers and acquisitions in your industry.