Logistics M&As hit two year high

Mergers and acquisitions in logistics have hit a two year high, according to accountants BDO.

There were 12 reported deals in the second quarter of 2018 – the highest since the first quarter of 2016, BDO’s Logistics & Supply Chain Management M&A Update said.

It said the sector continues to attract interest from private equity investors, with 25 per cent of these transactions involving new investment from private equity houses and one third of the deals being accounted for by private equity exits. Interest in UK logistics and supply chain management businesses remains strong from continental Europe, accounting for almost a third of transactions to date in 2018.

Jason Whitworth, M&A partner at BDO, said: “Despite the continued struggle with the uncertainty of Brexit and the lack of visibility on a clear road map, there are significant market opportunities across supply chain management and we are seeing ambitious businesses take action to cement their strengths, manage risk and position their businesses for growth in coming years.

BDO advised The Delivery Group management on its recent MBO, and provided advisory services to The Pallet Network on its sale to Eddie Stobart in a deal worth £52.8m.

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