Logistics Deals See Upswing

Now that the global pandemic is firmly in the rearview mirror, more logistics companies are looking to buy or considering selling their businesses (The Wall Street Journal, subscription).

What’s going on: “Mergers and acquisitions are making a comeback in the logistics sector … signaling the end of a two-year period in which the once-bustling corner of the M&A industry slowed. Bankers, private-equity firms and consultants say a return to stability in transportation and logistics markets is key to the renewed activity.”

The details: The value of last year’s deals totals slightly less than $43 billion, a decline of 76% from 2021—but 2024 is a different story.

In the first half of the year, there were at least 12 deals made, each worth more than $100 million, according to research group Armstrong & Associates. That’s up from nine in 2023.
The research firm is also “seeing much more interest from companies of all sizes looking to sell.”
According to other industry experts, these include private-equity firms, which usually buy and retain companies for about five years. Many firms have waited longer than usual to sell, due to the pandemic-induced instability in the freight market.