Transportation and logistics deals insights Q3 2017

 

 

Global transportation and logistics deal activity remained buoyant in Q3

M&A activity in the global Transportation and Logistics (T&L) sector continued to be robust in Q3 2017 after a significant pick up in Q2 2017. Overall, the sector reported 71 transactions worth $43.3 billion, and experienced the second highest level of quarterly deal volume and value in the last three years. Q3 2017 also reported 5 of the 10 largest T&L deals of 2017.

 

 

 

“Global T&L deal activity remained buoyant in Q3 2017. In Canada, the T&L sector continues to face disruptive pressure from new technologies and the shifting of supply chains that is resulting from continued e-commerce growth”

- Eric Castonguay 
Deals Partner, PwC Canada

 

 

Key trends this quarter

Deal value of the T&L sector decreased by 7% to $43.3 billion in Q3 2017 versus Q2 2017. Deal volume declined by 4% during the same period.

Six megadeals with a total aggregate disclosed value of $26.2 billion were announced, which was a decrease from eight deals worth $29.5 billion last quarter.

The Logistics and Passenger Air categories recorded the highest quarter-over-quarter growth in deal value, whereas the Trucking and Passenger Air categories recorded the highest quarter-over-quarter growth in deal volume. Logistics accounted for the largest share of 32% in deal value while Shipping accounted the highest in deal volume with 24% share.

Deal value for strategic investors declined 46% this quarter despite higher deal volume. Financial investor deal value grew by 78% to $26.0 billion despite lower deal volume.

Asia & Oceania continued to be the strongest region in M&A activity.

 

 

Q3 highlights

Largest transaction

In July 2017, Nesta Investment Holdings Ltd announced an $11.6 billion acquisition of GLP. The deal will enable GLP to expand into new markets, potentially in Europe and represented one of the largest private equity deals to date in Asia.

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Megadeals

The volume of transactions valued over $1 billion decreased to six deals, compared to eight deals in Q2 2017. Similar to last quarter, megadeals held about 60% share in the total disclosed deal value.

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Sector category analysis

Despite the volume decline, the Logistics category led the significant growth in Q3 2017 deal value, attributable to the megadeal between Nesta Investment and GLP. Passenger Air also grew considerably in deal value while recording a stable deal volume. The Shipping category posted sizeable growth of 46% in deal value. M&A activity declined in Passenger Ground and Rail from last quarter and also lacked any megadeal activity.

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Contact us

D. Scott Collinson
National Transportation and Logistics Consulting Leader
Tel: +1 416 687 8188
Email

Sonia Boisvert
Partner
Tel: +1 514 205 5312
Email

Rodrigue Gilbert
Transportation and Logistics Leader
Tel: +1 416 687 8714
Email

Eric Castonguay
Partner, National Corporate Finance Leader
Tel: +1 416 815 5094
Email

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