Transportation/logistics M&A not on track to match 2007 levels

May 16 - Stockhouse - Both deal volume and value in the transportation and logistics industry declined during the first quarter of 2008, according to the PricewaterhouseCoopers LLP Q1 2008 edition of Intersections: Global Transportation & Logistics Mergers and Acquisitions Analysis. Global deal activity is not on track to match the levels seen in 2007; however, the 45 deals (worth at least $50 million each) announced in the first quarter is on track to exceed 2006 levels.The credit markets and slowing deal activity in the United States significantly affected deal volume in the first quarter of the year. When excluding deals in which a U.S. entity was the acquirer or target, the number of deals (38 deals) is on pace to exceed both 2006 and 2007 levels (119 and 142 deals respectively), indicating that a concern over an economic slowdown in the United States may be lowering the attractiveness of U.S. targets - as well as the willingness and ability of U.S. acquirers - to make deals, according to the PwC analysis. Read More.

M&A Deal Activity in Industrial Products Slows

May 14 - Modern Distribution Management - Weakness in the U.S. economy continues to affect M&A deal activity and value in the industrial products sectors, specifically industrial manufacturing, chemicals, and metals, according to a series of PricewaterhouseCoopers LLP first quarter M&A reports. While deal activity remains steady, deal volume and value is not on pace to exceed 2007 levels; however, the number of deals announced during the quarter is on track to meet or exceed 2006 levels.

The slowdown in the pace of large deals announced in the first quarter is a direct reflection of the difficult financing environment. Only the transportation & logistics sector is on pace to exceed the level of large deals in both 2006 and 2007. Deal interest for targets in Asia has been particularly strong during the quarter across each subsector. Additionally, the weak U.S. dollar is driving the increased interest in U.S. targets by cross-border acquirers. Read More.

Transportation and Logistics M&A Deal Volume Hit 20-Year High in 2007

But despite record number of deals, total deal value in 2007 saw significant drop, PricewaterhouseCoopers reports

February 7 - Supply & Demand Chain Executive - Total transportation and logistics merger and acquisition deal volume reached a 20-year high with 1,291 deals in 2007, toppling the prior record reached in 2006, according to a new report from consulting firm PricewaterhouseCoopers.

"Intersections," PwC's quarterly report on M&A in the global transportation and logistics industry, shows that despite the record number of deals, total deal value in 2007 experienced a significant drop to $83 billion, down from the 20-year high of $164 billion set in 2006.

This decline was due in part to several large deals announced in 2006, including competing bids for a passenger air target and the proposed acquisition of another passenger air target, although all but one bid was eventually withdrawn, the consultancy reported. Read More.

Mergers/acquisitions in global transportation market exceeding ’06 levels, report says

December 7 - Progressive Railroading - There have been a number of mergers and acquisitions among transportation and logistics firms so far this year. So much so, M&A volume worldwide is on pace to exceed 2006 levels, according to PricewaterhouseCoopers' most recent quarterly report on M&A activity in the global transportation and logistics industry.

During 2007’s first three quarters, the value of M&A deals totaled $39 billion, far exceeding the deals totaling $27 billion consummated in the same 2006 period. Declining debt market liquidity and “stock market volatility felt by financial investors” helped spur dealmaking, PricewaterhouseCooper said. Read More.

Transportation & Logistics 2007 Deal Volume is Likely to Surpass 2006 Levels, According to PricewaterhouseCoopers

Deal Value Running High, But Unlikely to Reach 2006 Levels

December 3 - Prime Newswire - Total transportation and logistics deal volume for 2007 is on pace to exceed 2006 levels, according to Intersections, PricewaterhouseCoopers' quarterly report on M&A in the global transportation and logistics industry, released today. This may be due in part to the effects of the decline in debt market liquidity and stock market volatility felt by financial investors.

Total deal value during the first three quarters of 2007 exceeded the total deal value announced during the comparable period in 2006 ($39 billion versus $27 billion, respectively), though it is not on pace to exceed the total deal value announced for all of 2006. Read More.

BMO Capital Markets Releases Annual M&A Report on the North American Transportation Industry

M&A activity remained strong in 2006 and deal volume is expected to continue but may be slower in the short-term due to current credit market conditions

September 6 - CNN Money - The two-volume report provides an in-depth review of mergers and acquisitions and corporate finance activity among Transportation Industry Service Providers and Transportation Equipment Manufacturers. The report also looks at the level of M&A activity in various sub-sectors, including active strategic and financial acquirers and a summary of financial parameters, including valuation metrics.

"Overall, the M&A activity in the transportation industry remained strong in 2006 with a total number of 253 transactions being announced," said Paul Hawkinson, Managing Director and Head of BMO Capital Markets' Commercial & Industrial Sector Group. "The volume of activity was driven by several secular trends including the continued outsourcing of transportation activities by corporations and the off-shoring of manufacturing activity as corporations moved to lower costs." Read More.

Transportation and logistics M&A activity continues to make strides

July 17 - Logistics Management - Coming off of a busy 2006 in which there were approximately $7 billion in mergers and acquisition activity in the transportation and logistics market, activity in this space through the first seven months of this year appears to be maintaining that momentum, according to Ben Gordon, managing director of BG Strategic Advisors.

Speaking at the eyefortransport 3PL Summit/Outsourcing Logistics event in Atlanta last month, Gordon likened the brisk rate of deal making in this sector to a form of “winner take all economics,” in which there is a rapid ascension of capital being deployed by private equity and venture capital firms into transportation and logistics companies. Read More.