The logistics sector is currently undergoing significant transformation, as evidenced by the number of transactions recorded in autumn 2024. Experts at AURIS Finance, a consultancy specialising in mergers and acquisitions, provide an analysis of the trends for 2024 and offer insights into the months ahead.
The month of October 2024 saw a notable increase in mergers and acquisitions within the logistics sector. The majority of acquisitions were concentrated in the Americas and Europe, representing 86% of the total. This figure demonstrates the robust consolidation trend in mature markets.
Large-scale operations
The most notable transaction was the acquisition of the Schenker transport and logistics group by the Danish logistics group DVS from Deutsche Bahn (DB), the German railway company. The sale is valued at €14.3 billion, representing Deutsche Bahn’s most significant divestment to date. The merger will result in the creation of a global transport and logistics giant with a presence in more than 90 countries and a combined workforce of approximately 150,000. In France, this acquisition will result in DSV doubling its market share in the transport sector from 4.0% to 7.9% in terms of revenue, placing it ahead of DHL Global Forwarding and Kuehne + Nagel. MSC’s acquisition of a controlling stake in Brazilian port operator Wilson Sons for $768 million was another notable transaction. This move was aimed at strengthening the position of MSC in the Brazilian market.
Sector diversification
In October, the market witnessed the continuation of an underlying trend, with carriers increasingly specialising by segment. At the end of September, Nippon Express Holdings completed the acquisition of Simon Hegele Group. The pharmaceutical logistics specialist offering end-to-end solutions for the healthcare industry is thus strengthening its presence in Europe, particularly in Germany. The target’s projected sales growth from €200 million to €300 million over the next five years demonstrates the economic attractiveness of this sector, particularly in the context of the post-pandemic recovery.
Technology integration
It would be incorrect to assume that mergers are solely driven by a desire for territorial expansion. In addition to pure players, a number of transactions have been carried out by software solution providers with the objective of enhancing their digital capabilities. Sage has acquired Anvyl, a New York-based company specialising in supply chain software solutions. Consultancy Accenture has also expanded its capabilities in distribution centre optimisation for its retail clients with the acquisition of Joshua Tree Group, a supply chain consultancy.
Our experts at your service
In the mature markets of Europe and America, the logistics and supply chain sector is evolving towards a model where scale, technological sophistication and specialist expertise are becoming key competitive advantages. Against this backdrop, we can anticipate a significant level of activity, with the largest entities seeking to acquire organisations with strong local roots in order to extend their territorial coverage. In addition, specialist transport and logistics companies, particularly those operating in the healthcare sector, will pursue growth through inorganic expansion. Finally, software providers must develop enhanced digital capabilities to assist logistics companies in their digital transformation. AURIS Finance’s team of experts are sector specific. They can assist with merger and acquisition operations, from identifying the target to integrating it.
