Despite continuing Brexit uncertainty, deal volumes in the UK and Ireland’s logistics and supply chain management sector have hit levels last seen in the first quarter of 2016 with 12 reported deals, according to accountancy and business advisory firm BDO’s Logistics & Supply Chain Management M&A Update.
The sector continues to attract interest from private equity (PE) investors, with 25% of these transactions involving new investment from PE houses and one third of the deals being accounted for by PE exits. Interest in UK logistics and supply chain management businesses remains strong from continental Europe, accounting for almost a third of transactions to date in 2018.
Jason Whitworth (above), M&A partner at BDO, explained: “Despite the continued struggle with the uncertainty of Brexit and the lack of visibility on a clear road map, there are significant market opportunities across supply chain management and we are seeing ambitious businesses take action to cement their strengths, manage risk and position their businesses for growth in coming years. Corporates continue to search out scale, a broader service offering, geographic reach, and the technology to deliver efficiencies of automation and enhance the ultimate consumer experience. It comes as no surprise that the exceptionally strong liquidity within the financial institutions is fuelling M&A either via the corporates or by direct private equity investment. It’s certainly an industry that investors and trade buyers are watching closely.”