Executive Briefings

M&A Activity Shows Improvement in Transportation and Logistics Sectors

Deal volume and deal value in the transportation and logistics (T&L) sector continued on an upward trajectory in the fourth quarter of 2009, compared to the first three quarters of the year, according to a new PricewaterhouseCoopers LLP report, Intersections: Fourth-quarter 2009 global transportation and logistics industry mergers and acquisitions analysis. Thirty-three deals with a total value of $48.5bn were announced during the fourth quarter in the T&L sector, compared with 26 deals announced with a value of $8.1bn in the third quarter of 2009. The significant improvement in deal value is primarily attributable to one large transaction valued at $36.7bn. However, even outside of this large deal, the sector still showed signs of marked improvement.

"We feel we really started to turn a corner in the transportation and logistics sector in the fourth quarter," says Kenneth Evans, U.S. transportation and logistics leader for PricewaterhouseCoopers. "Both deal volume and deal value are on the rise, and we're seeing signs of fewer distressed deals taking place, more involvement from financial investors and larger deals spotting the landscape."

The three largest deals in 2009 were announced during the fourth quarter, accounting for 87 percent of total deal value in the quarter. The increase of large deal activity also resulted in an improvement in average deal value for the quarter. The average value of deals announced during the fourth quarter was $1.5bn, compared with $308m for the third quarter of 2009.

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Deal volume and deal value in the transportation and logistics (T&L) sector continued on an upward trajectory in the fourth quarter of 2009, compared to the first three quarters of the year, according to a new PricewaterhouseCoopers LLP report, Intersections: Fourth-quarter 2009 global transportation and logistics industry mergers and acquisitions analysis. Thirty-three deals with a total value of $48.5bn were announced during the fourth quarter in the T&L sector, compared with 26 deals announced with a value of $8.1bn in the third quarter of 2009. The significant improvement in deal value is primarily attributable to one large transaction valued at $36.7bn. However, even outside of this large deal, the sector still showed signs of marked improvement.

"We feel we really started to turn a corner in the transportation and logistics sector in the fourth quarter," says Kenneth Evans, U.S. transportation and logistics leader for PricewaterhouseCoopers. "Both deal volume and deal value are on the rise, and we're seeing signs of fewer distressed deals taking place, more involvement from financial investors and larger deals spotting the landscape."

The three largest deals in 2009 were announced during the fourth quarter, accounting for 87 percent of total deal value in the quarter. The increase of large deal activity also resulted in an improvement in average deal value for the quarter. The average value of deals announced during the fourth quarter was $1.5bn, compared with $308m for the third quarter of 2009.

Read Full Article