Q3 2011 global Transportation & Logistics industry M&A analysis
The pace of deal activity in the third quarter has slowed only slightly, primarily driven by less activity in emerging markets - including inbound BRIC and non-BRIC transactions. One encouraging sign is that average deal values have held up well relative to the first half of the year mainly because of mega-deal activity. There were four mega-deals announced in the third quarter compared to three mega-deals during the first half of the year positively indicating that acquirers are pulling the trigger on some larger deals despite the backdrop of economic uncertainty.
For transportation and logistics deals worth $50 million or more, there were 39 announced transactions totaling $11.3 billion in the third quarter, a decrease when compared to the 46 deals worth $13.4 billion in the second quarter of 2011. Despite the decrease, average deal value was $290 million in 3Q, which was up from $272 mil for the YTD period. Deal activity shifted toward shipping and logistic modes and away from passenger targets in 2011. Global domestic deals continue to dominate the T&L deal market as companies look to build out existing networks for growth and potential synergies for a greater return on investments.