InSight

Exit and Growth Strategies for Middle Market Businesses

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

By Peter Heydenrych | Mar 05, 2020

The report below gives 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 Transportation and Logistics sector for Q4 2019 included 49 closed deals, according to data published by industry data tracker FactSet.

One of the notable lower middle market transactions was announced in December when Franchise Group, Inc. acquired American Freight of Ohio, Inc., a portfolio company of The Jordan Co LP, for US$450 million in cash, subject to certain adjustments. Franchise Group, Inc. is a holding company. American Freight Furniture & Mattress is a warehouse-style furniture store that specializes in furniture obtained through dealer cancellations, factory closeouts, retail chain buyouts, & wholesale liquidations.

There was a significant plunge in cargo volumes in February that could get even worse in the coming months if the coronavirus disease 2019 (COVID-19) worsens and spreads further. The ports of Los Angeles and Long Beach are forecasting a 12 to 15 percent decline in container volume in the first quarter as carriers continue to cancel sailings in the trans-Pacific.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for trucking fleets, fell and rose 2.4% and 7.0%, respectively, in the week ending December 16, 2019, compared to the same week in 2018.
  • Total US manufacturers’ shipments, an indicator of the volume of goods shipped by truck, rose 0.8% year-to-date in October 2019 compared to the same period in 2018.
  • Total US revenue for general freight trucking fell 2.4% in the third quarter of 2019 compared to the previous year.

Posted by Peter Heydenrych.

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


Leave a Comment