CSCMP’s Supply Chain [Quarterly]: “What private equity investments in transportation and logistics could mean for you”
What private equity investments in transportation and logistics could mean for you
Private equity (PE) firms are moving into the transportation and logistics (T&L) space in a big way. Globally, PE firms were the acquirers in nearly 50 percent of the merger and acquisition (M&A) deals in transportation and logistics in 2017, up from 40 percent of such deals in 2015. That trend is continuing: As of the end of Q1 2018, PE firms were responsible for 35 of the 44 T&L acquisitions that occurred during that quarter. The actual number of deals that PE firms have closed has grown, too. In 2015, they acquired 94 T&L companies; in 2017, they made 135 acquisitions, a nearly 44 percent increase. These acquisitions include both asset-light and asset-heavy T&L companies across all modes of transportation.