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Archive for the ‘Transport/Logistics’ Category

M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Sep 06, 2018

The report below provides a good overview of the third quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q2 2018 included 50 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in July when The Jordan Co LP acquired GlobalTranz Enterprises, Inc., a portfolio company of Providence Equity Partners LLC, Susquehanna Growth Equity LLC, Volition Capital LLC and Savano Direct Capital Partners LLC, for an undisclosed amount. The acquisition expands Jordan Co’s existing portfolio. GlobalTranz Enterprises is located in Scottsdale, Arizona and provides international freight forwarding services.

As the retail sector shifts more toward e-commerce, there continues to be a surging demand for truck drivers.

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M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Jun 11, 2018

The report below provides a good overview of the second quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector.  M&A activity for North American based target companies in the Transportation and Logistics sector for Q1 2018 included 44 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Greenbriar Equity Group LLC acquired LaserShip Inc, a portfolio company of Monitor Clipper Partners LLC, for an undisclosed amount. The acquisition supports Greenbriar Equity Group LLC’s expansion strategy. LaserShip is located in Vienna, Virginia and provides custom delivery and distribution solutions.

The warehousing and logistics industries are trending toward automation and robotics to remain competitive. Tractica, a global research organization, forecasts that worldwide warehousing and logistics robot unit shipments will increase from 40,000 units in 2016 to 620,000 units annually by 2021.
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M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Apr 04, 2018

The report below provides a good overview of the first quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q4 2017 included 23 closed deals, according to data published by industry data tracker FactSet.

One of the largest transactions of the quarter closed in October when AMP Capital Investors Ltd, acquired ITS Technologies & Logistics LLC from Carlyle Infrastructure GP Ltd for US$500 million. AMP Capital Investors Ltd. (AMP Capital) is the wholly-owned investment management subsidiary of AMP Capital Holdings Ltd., ultimately held by financial group AMP Ltd. (SY: AMP, ADR: AMLYY) in Australia. ITS Technologies & Logistics provides rail intermodal terminal services. The firm offers rail terminal operations, auto loading and unloading, contract switching and lift equipment, and trailer and chassis maintenance. The company was founded in 1984 and is headquartered in Darien, IL.

There is a significant shortage of qualified truck drivers. As the US economy has improved, demand for freight transportation has grown, and carriers are increasingly concerned that trucking demand will outstrip the supply of qualified drivers.

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M&A News In The Transport, Logistics and Supply Chain Industry

By Peter Heydenrych | Dec 11, 2017

The report below provides a good overview of the fourth quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q3 2017 included 41 closed deals, according to data published by industry data tracker FactSet.

There has been significant consolidation in the supply chain technology sector, which has a substantial impact across the supply chain and logistics sector. Case in point, in September of this year HighJump, a global provider of supply chain management solutions, announced that it acquired Wesupply, a United Kingdom-based premier provider of supplier enablement and B2B integration solutions across multiple industries including retail, building, CPG, energy and manufacturing. With this acquisition, HighJump further expands its global footprint and extends its growing position in the market.
E-commerce giant Amazon continues to be a leader in supply chain and logistics with more than 200 fulfillment centers across the United States.

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Logistics & Transport Industry M&A News | 1st Quarter 2017

By Peter Heydenrych | Apr 15, 2017

Logistics & Transport IndustryAccording to Douglas Nix, Chairman of CFA’s Transportation and Logistics Industry Group, there is a very strong demand for good quality logistics & transport companies of all sizes. Significant bid premiums are being submitted by all categories of strategic buyers in every auction run by CFA.

On a global scale, the shipping of dry bulk containers – across all modes – continues to climb and is projected to continue on an upward trajectory. The growth is expected to be driven by freight rates, ship availability, ship utilization, oil market fundamentals, exchange rates and commodity prices and production.

A recent industry survey reported that the top priorities of North American logistics leaders for their 2017 transportation operations were:

  • Reduce overall transportation costs
  • Improve route planning accuracy
  • Improve the quality and timeliness of management information/reporting

While there are several reasons driving these priorities, we believe the key ones are:

  • The continued shortage of qualified drivers. Many trucking companies are still reporting 100% annual turnover rates in their driver pool. The impact of the Federal Motor Carrier Safety Administration’s electronic logging devices requirement is expected to worsen this shortage as it comes on stream in December 2017.
  • Continued weakness in freight rates resulting from overcapacity in intermodal, water and road markets.
  • The tightening of supply chains combined with the growing demand from shippers for transparency and real time, accurate freight status information. 

Industry Indicators:

  • Total US manufacturers’ shipments, an indicator of the volume of goods shipped by truck, fell 1.5% year-to-date in December 2016 compared to the same period in 2015.
  • Total US revenue for general freight trucking fell 1.4% in the second quarter of 2016 compared to the previous year.

Posted by Doug Nix.

Read the Entire Transport, Logistics and Supply Chain 1st Quarter Newsletter Here


Logistics & Transport M&A News

By Peter Heydenrych | Jan 06, 2017

logistics & transportM&A activity for North American based target companies in the Logistics & Transport sector for Q3 2016 included 55 closed deals, according to data published by industry data tracker FactSet.  The average transaction value was $197 million.

One of the largest deals of the quarter in the Transport & Logistics sector  took place in September when XPO Logistics announced it would acquire Con-way Inc., one of the country’s largest trucking companies, for $3 billion. XPO will launch a tender offer for all of Con-way’s outstanding shares at a cash price of $47.60 per share. All of the divisions under Con-way, which include Con-way Freight, Menlo Logistics, Con-way Truckload and Con-way Multimodal, are expected to be rebranded as XPO Logistics.

Developers of self-driving vehicles are moving closer to delivering technology that could improve safety, increase productivity, and reduce operating costs for trucking companies. Citing potential safety benefits, the US Department of Transportation issued federal policy for testing and deployment of automated vehicles in September 2016. The framework clarifies federal and state roles for the regulation of such vehicles, laying necessary groundwork for companies that plan to deploy self-driving cars and trucks. One such company, Otto, plans to start hauling freight with semi-autonomous vehicles sometime in 2017, according to Reuters. Commercial use of fully automated trucks is likely still many years away, and manufacturers will have to overcome significant challenges, including vehicle technology, inadequate infrastructure, and high development costs. However, Otto’s viability got a boost in August 2016: the company was acquired by Uber for $680 million.

Industry Indicators 

  • The average US retail price for diesel and regular gas, a major operating cost for trucking fleets, fell 2% and 0.9%, respectively, in the week ending October 17, 2016, compared to the same week in 2015.
  • Total US manufacturers’ shipments, an indicator of the volume of goods shipped by truck, fell 2.7% year-to-date in August 2016 compared to the same period in 2015.
  • Total US revenue for general freight trucking fell 1.4% in the second quarter of 2016 compared to the previous year.

Posted by Doug Nix.

Read the Entire Transport, Logistics and Supply Chain 4th Quarter Newsletter Here

 


M&A Trends in the Transport & Logistics Industry

By Peter Heydenrych | Oct 06, 2016

transport & logisticsTransport & Logistics: Trucking industry employment declined for a fifth straight month in June 2016. The freight economy began to soften during the first quarter of 2016 – after an uptick in employment in January, according to the American Trucking Associations (ATA), and driver demand weakened. Total employment for for-hire trucking fell by a noteworthy 6,300 jobs in June, according to a recent Department of Labor Employment Situation Report. Driver turnover rates also declined during the quarter, per the ATA, with turnover at large truckload fleets falling to an annualized rate of 89%. The turnover rate at small truckload carriers – fleets generating less than $30 million in annual revenue – came in at 88% during the same time frame. Turnover at less-than-truckload carriers, a small but growing part of the market, maintained its low rate, falling three points to just 8%.

Expansion by Amazon and other online retailers is boosting demand for warehouses in cities across the US, according to Bloomberg. E-commerce customers are becoming more accustomed to speedy shipping service, thanks in part to Amazon’s emphasis on same-day delivery, requiring retailers to find more warehouse space closer to population centers. The demand for warehouse space in cities is driving up rents: over the past year, prime warehouse rents are up nearly 10% across the US. The increase has been even greater in some large urban areas. Retailers that historically had one or two large warehouses in the middle of the country are now looking for smaller spaces in cities such as Atlanta, Dallas, and Kansas City to cut down their shipping times. Read more »


M&A News in the Transportation & Logistics Industry

By Peter Heydenrych | Jul 07, 2016

transportation & logisticsTransportation & Logistics sector gained steam as the quarter closed.

A growing number of technology companies in the US are setting their sights on streamlining the local trucking industry. Similar to the popular ride-sharing app Uber, new on-demand trucking services connect shippers and local truckers through smartphone apps. By eliminating broker fees and reducing carriers’ reliance on phone conversations, faxes, and emails, such services promise to reduce administrative costs for carriers and make it easier for shippers to quickly find trucks and track shipments on their smartphones. Two companies offering on-demand local trucking apps, Cargomatic and Convoy, have already raised significant funding that should help them expand operations. Cargomatic, which operates in California and New York, raised $8 million in Series A funding in 2015; Convoy, which currently operates in Oregon and Washington, raised $16 million in Series A funding in March 2016. Read more »


M&A News from the Transportation and Logistics Sector

By Peter Heydenrych | Feb 04, 2016

Transportationa and Logistics sectorM&A Trends

Many of the larger companies in the transportation and logistics sector are looking to M&A as a means to grow revenue and expand capabilities. A prime example is FedEx’s 2015 acquisition of 3PL provider Genco, which enabled FedEx to expand its ability to process returns and provide other third-party logistics services.

Industry Update

Companies involved in freight forwarding and logistics are increasingly looking to acquire businesses in other countries to grow sales and remain competitive. In a bid to increase its scale and reach, Danish transport and logistics provider DSV agreed to purchase US-based UTi Worldwide for $1.35 billion in October 2015. The combined companies will have employees in more than 80 countries and a significant presence in Europe, the Middle East, North Africa, and the Americas. Other cross-border deals announced or completed in 2015 include the acquisition of US-based APL Logistics by Japan’s Kintetsu World Express, US-based XPO Logistics’ purchase of Norbert Dentressangle (France), FedEx’s bid for TNT Express (Netherlands), Japan Post’s acquisition of Toll Holdings (Australia), and France Geodis’s purchase of US-based OHL, according to American Shipper. Read more »


Transportation & Logistics M&A News

By Peter Heydenrych | Oct 22, 2015

Logistics 2M&A in the transportation & logistics space continues to be driven by non-asset logistics companies with proprietary technology. A deal that illustrates this is the whopping $1.8 billion cash acquisition of Coyote Logistics, LLC, a portfolio company of Warburg Pincus LLC, by United Parcel Service. The acquisition would allow UPS to expand its portfolio and transportation management services.

Proposed fuel efficiency rules will likely accelerate investment in fleet upgrades by the US trucking industry. Federal transportation and environmental regulators in June 2015 announced new fuel efficiency standards for heavy-duty trucks that aim to cut carbon emissions by 24% by 2027 and reduce oil consumption by 1.8 billion barrels over the lifetimes of the new trucks. Under the new rules, a best-in-class long-haul truck would get about 10 miles per gallon of fuel compared to the 5 to 7 miles today.

Technology companies are attempting to significantly streamline the processes used by shippers to book freight forwarding services. One such company, Freightos, recently received $14 million in Series B funding to expand its offerings, according to TechCrunch. Freightos has developed an online platform that helps forwarders manage their rates and automate their routing and pricing. Shippers can use the platform to receive instant competitive quotes that take into account a wide variety of shipping fees.

  • The average US retail price for diesel and regular gas, a major operating cost for trucking fleets, fell 33.9 percent and 31.3 percent, respectively, in the week ending September 14, 2015, compared to the same week in 2014.
  • According to data from the Interindustry Economic Research Fund, Inc. (IERF), an economic research group, revenue for US truck transportation is forecast to grow at an annual compounded rate of 5% between 2015 and 2019.

Posted by Doug Nix.

Read the Entire Transport, Logistics and Supply Chain 4th Quarter Newsletter Here