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 2018 included 59 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in September when General Logistics Systems BV, a subsidiary of Royal Mail Group Ltd, ultimately owned by Royal Mail Plc, acquired Dicom Transportation Group Canada, Inc., a portfolio company of Wind Point Advisors, LLC, for CAD360 million (US$276.1 million) in cash, on a cash-free debt-free basis. The acquisition allows Royal Mail to further expand and diversify its existing business operations. Dicom Transportation Group Canada is located in Montréal, Québec and provides business to business transportation services. It generated revenue of approximately CAD233 million (US$178.7 million) for the year ended June 30, 2018.
Industry Indicators
- The average US retail price for diesel and regular gas, a major operating cost for trucking fleets, rose 19% and 13%, respectively, in the week ending October 29, 2018, compared to the same week in 2017.
- Total US manufacturers’ shipments, an indicator of the volume of goods shipped by truck, rose 7.6% year-to-date in August 2018 compared to the same period in 2017.
- Total US revenue for general freight trucking rose 7.7% in the second quarter of 2018 compared to the previous year.
Posted by Peter Heydenrych.
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