Article:

M&A Market Reviews: Logistics and Supply Chain sector

11 November 2021

2021 Q3 Logistics & Supply Chain Sector M&A Update: High levels of deal activity set to continue as sector invests for growth

In a month where the challenges facing the Logistics sector have never been more visible, we launched our latest UK Logistics Confidence Index 2021, a survey of over 100 leading decision makers across the industry.

With a focus on growing revenues and operational margins it is no surprise to see that M&A remains high on the board room agenda with 42% of respondents, the highest level since the survey began in 2012, saying they were likely to make acquisitions over the next 12 months. Economies of scale and expansion of service offering are reported as the main drivers behind this.

All of which is reflected in our review of Q3 deal activity, with volume up again following three consistently high quarters. It is no surprise given the headlines and economic uncertainties as we entered peak trading that our BDO FTSE Logistics Index had its first quarterly decline since Q1 2020. However, this decline in listed company valuations is in sharp contrast to what we are seeing in M&A, where competition for quality assets and funding liquidity mean valuation levels remain high. We had direct involvement in two of the key recent deals outlined below, the sale of the fulfilment business, Cygnia, to Wincanton plc and the IPO of Microlise, and we continue to see real opportunity for shareholders to grow value in the current market, whether in raising investment capital, de-risking, or seeking a full exit.

Key deals include:

DOWNLOAD THE Q3 SNAPSHOT

BDO’s Logistics team has broad experience in the global logistics and supply chain management sector.

We are proud of our track record in this sector and passionate about contributing to your success.

Find out more about how we can help you.

Previous M&A annual reports and market snapshots for the logistics and supply chain sector: