Logistics and supply chain deals up 49% in past 12 months

UK transaction volumes in the logistics & supply chain management industry have doubled since last year with 64 UK deals reported in 2019, according to the latest report from accountancy and business advisory firm BDO LLP.

Seventeen of these deals were completed in the last quarter of 2019 which marked the second most active quarter in a five-year period. 92% of UK deals were driven by domestic buyers in 2019. The average value of disclosed deals dropped to £28.5m in 2019 from £51.9m in the previous year, suggesting a reduced appetite from international buyers for large investment amidst continued economic uncertainty.

There was increased interest from institutional investors which completed 16 deals in 2019 – double the 2018 deal count.

Freight logistics was the most active sub-sector for deal volumes, with five transactions of the 17 deals completed in Q4.

Jason Whitworth, M&A partner and Logistics & Supply Chain Management lead at BDO, explained: “I expect the coming year to be a buoyant market for logistics deals, with technology a key driver as incumbent market leaders look to adopt nascent technology and stay ahead of the curve. The drive for consolidation will continue and interest from foreign investment is likely to grow again towards the end of the year if we get more clarity as to our European trading relationship.”