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.”