Global transportation and logistics deals insights: Q1 2017

 

Executive summary

Deal activity in the global transportation and logistics sector remained stable in the first quarter of 2017. While total deal value grew by 2%, deal volume declined by 9%.

The passenger air category continued to drive most deal value in the sector, recording two megadeals in Q1 17.

As anticipated, given the recent structural changes in the category, shipping deal activity picked up.

Logistics continued to be an active category, although not to the levels experienced in late 2015 and early 2016.

While not traditionally active in M&A, the rail category delivered the largest deal of the quarter, a $2.1 billion acquisition of Florida East Coast Railway by Infraestructura y Transportes Mexico.

After several active quarters through mid 2016, deal activity in the trucking category appears to have tempered, although the recent Swift-Knight merger announcement suggests the forces driving M&A in the category continue to exist.

"Strategic investors continue to lead deal activity across both value and volume, as companies look to M&A as a solution to stay competitive in a very dynamic sector."

Darach Chapman, US Transportation and Logistics Deals Leader

Key trends/highlights

  • Deal value in the T&L sector increased 2% to $18.2 billion in Q1 17. Deal volume dropped by 9% from the previous quarter.
  • Three megadeals were announced in Q1 17, but only accounted for 27% of deal value this quarter, whereas megadeals drove 60% of deal value in FY16.
  • Passenger air and shipping accounted for almost 50% of deal value activity in the quarter.
  • Despite a decrease in total deal value in the Asia and Oceania region this quarter, the region continued to drive deal activity across the sector – accounting for 41% share in value and 51% share in volume.
  • A reduction in financial buyer activity in the sector contributed to the overall drop in deal volume in Q1 17, as strategic buyers increased their deal activity both in terms of deal volume and valu

For our full report and additional information on the top 10 deals announced for the year, our regional and subsector analyses, and the outlook for this sector, please remember to download our:

Global transportation and logistics M&A deals insights: Q1 2017 update.

Contact us

Darach Chapman
Principal, US Transportation & Logistics Deals Lead
Tel: +1 (305) 375 6220
Email

Jonathan Kletzel
US Transportation & Logistics Leader
Tel: +1 (312) 298 6869
Email

Julian Smith
Global Transport & Logistics leader, PwC
Tel: +62 21 52890966
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