M&A Activity Subdued in Transportation, Logistics Sectors
Merger and acquisition (M&A) activity in the transportation and logistics industry remained steady during the fourth quarter of 2014 according to Intersections, a quarterly analysis of global deal activity in the transportation and logistics industry by PwC US. However activity for the whole year was relatively weak, finishing near 10-year lows. “M&A activity in the fourth quarter remained consistent with the subdued levels we witnessed throughout 2014, however, we are cautiously optimistic regarding 2015 as the recovery in many advanced economies continues,” said Jonathan Kletzel, U.S. transportation and logistics leader for PwC. “The U.S. economy remains strong and a strong U.S. dollar makes acquisitions by U.S. players cheaper for offshore targets.
PwC: Transport, Logistics Starts 2014 Subdued
Merger and acquisition (M&A) activity in the transportation and logistics industry began 2014 on a soft note, with the total volume of deals matching the lowest level seen since the fourth quarter of 2011. Total first quarter deal activity and value were down from the spike in the fourth quarter of 2013, but average deal sizes were generally in line with the past several years, according to PwC US. There were 37 transportation and logistics transactions worth $50 million or more in the first quarter of 2014, totaling $16.1 billion, compared to 75 deals worth $27.2 billion in the fourth quarter of 2013. However, overall deal volume was generally flat with the 41 deals recorded in last year’s first quarter, which accounted for $16.2 billion in value.
