UK transaction volumes in the logistics & supply chain management industry increased sharply in 2018, rising 48%, according to accountancy and business advisory firm BDO’s latest Logistics & Supply Chain Management M&A Review. This was supported by continued investment from international buyers.
Global deal activity remained steady, with volumes up by 1.1%, but with a significant shift to larger deals, with six mega deals – in excess of £1bn – announced globally in the 12-month period, and average deal value up 90%. In contrast, the UK & Ireland average deal value dropped by 57%, indicating a shift towards high volumes of mid-market deals. This trend continued into Q1 2019, where UK deal activity outperformed Q1 in 2018 and 2017. Aggregate deal value was up, reaching £32.4bn globally and £830m in the UK & Ireland.
Institutional investment into the UK & Ireland increased by 14% despite the industry having to manage the continued uncertainties of Brexit. The latest Q1 2019 GDP figures suggest the economy was resilient to these uncertainties by outperforming Europe.
Jason Whitworth, M&A partner and logistics & supply chain management lead at BDO, explained: “In a rapidly changing and increasingly competitive market, the level of investment and transactional activity in the Logistics and Supply Chain sector has remained strong. With a continued focus on change, there are pockets of real opportunity within the sector and businesses embracing technology and differentiating their service proposition represent extremely attractive investments.”
BDO LLP has continued to develop its significant credentials in the sector, advising on many deals including the sale of Core Management Logistics to Rhenus Logistics and the investment by Towerbrook Capital Partners in GBA Group.