Logistics

Logistics Industry: A New Era of Mergers and Acquisitions

The logistics industry, a cornerstone of global commerce, is experiencing a significant wave of mergers and acquisitions that are reshaping its landscape. With companies making strategic moves to bolster their market positions, the influx of investment is driving a consolidation spree across the sector.

Major Transactions Highlight Market Dynamics

Two notable transactions have captured significant attention: E2Open's move to go private in a $2.1 billion deal and the sale of Ware2Go by UPS to Stord. These transactions underscore the evolving strategies of key players in the logistics industry as they adapt to new market conditions.

"The logistics industry is experiencing a surge in mergers and acquisitions due to an influx of new investment."

FedEx Corp.'s acquisition of warehousing and distribution specialist Genco propelled them to No. 10 on the 2015 Transport Topics Top 50 listing of the largest logistics companies in North America. Meanwhile, C.H. Robinson Worldwide completed a deal that elevated them to No. 4 on the same list.

The first 11 weeks of 2015 saw more money spent on acquiring trucking and logistics companies than in any of the past five years, highlighting the robust activity in the sector.

Strategic Moves and Joint Ventures

Lineage Logistics LLC has entered a joint venture with Hanoi-based SK Logistics to enhance its logistics operations in Vietnam. This collaboration involves operating two cold storage warehouses totaling approximately 400,000 square feet in Hanoi and Ho Chi Minh City. Lineage Logistics, a Novi-based cold storage and transportation giant, seeks to strengthen its presence in northern Vietnam through this strategic partnership.

This joint venture is part of a broader trend of major mergers and acquisitions within the logistics industry, as companies seek to expand their geographical footprint and enhance operational capabilities. Furthermore, Lineage Logistics is expanding its Pacific Northwest footprint through acquisitions, indicating a strategic focus on growth and regional dominance.

Industry Experts Weigh In

"Industry and investment experts believe that the trend of mergers and acquisitions in the logistics industry is likely to continue."

Experts suggest that despite occasional setbacks, such as tariffs affecting corporate dealmaking, opportunities for strategic acquisitions remain abundant. The logistics sector, with its intricate network of supply chains, continues to attract investment and interest from global players looking to capitalize on growth opportunities.

Resources and Information

Transport Topics, located at 80 M Street SE, Suite 800, Washington, D.C., 20003, serves as a key information source on the logistics industry. They provide resources, classifieds, and job listings, offering valuable insights into the ongoing developments and trends shaping the sector. For inquiries, Transport Topics can be contacted at 703-838-1770.

  • Transport Topics is a recognized source of information on the logistics industry.
  • They offer resources, classifieds, and job listings related to logistics.

As the logistics industry continues to navigate an era of consolidation and transformation, the strategic decisions made today will shape the future of global commerce. With major players like E2Open, UPS, and Lineage Logistics leading the charge, the industry is poised for a dynamic period of growth and innovation.